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 4.2% per annum and with a high proportion choosing to stay overnight.
Margaret River Tourism Growth 2015 - 2019
All visitation - 4.2%
International visitation - 9.8%
Domestic visitation - 2.1%
Overnight stays - 1.4%
Margaret River is located three hours from Perth Airport. Perth Airport is one of Australia's closest airports to Asia and is serviced by over 20 international, domestic and regional airlines. It is the fourth major international gateway in Australia. While international passengers to the region have increased, domestic passenger numbers have declined since FY13 due to the reduction in mining-related travel.
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 80% of nights spent in the region. According to the Australian Accommodation Monitor, there were 46 accommodation establishments in Margaret River at the end of June 2018 with 1,875 rooms and an average property size of 40 rooms. Hotel and serviced apartment properties have experienced revenue per available room (RevPAR) growth increasing on average by 7.9% per annum. Higher room rates have been the primary driver of growth with average daily rates (ADR) increasing 8.8% per annum, up from $177 in 2015 to $228 in 2018.
Margaret River: HMSA Historical Trading Performance 2015 to 2018
|2016||60.8% (-1.1%)||$189.5 (7.1%)||$115.1 (5.8%)|
|2017||57.9% (-4.8%)||$204.3 (7.8%)||$118.2 (2.7%)|
|2018||60.0% (3.6%)||$227.6 (11.4%)||$136.5 (15.5%)|
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.