The Snowy Mountains is a regional hotspot in Australian tourism, presenting an exciting opportunity for investors.
The Snowy Mountains region is an area of outstanding scenery, with landscapes varying from ski fields and mountain lakes to farmland. A significant proportion of the region lies within the Kosciuszko National Park making it an iconic Australian tourist destination and part of the Australian Alps National Landscape. The region is considered a year-round adventure playground boasting world-class skiing and a range of outdoor adventure sports throughout the year including alpine mountain biking, hiking and fishing.
Tourism to the Snowy Mountains region reached a record high in 2016 with 1.5 million visitors, before declining marginally in 2017 to 1.45 million visitors. Domestic day trippers accounted for 34% of visitors in 2017. Significant funding and marketing efforts are being undertaken to attract more visitors in the summer season in addition to the already popular winter ski season.
Growth in visitation to the Snowy Mountains 2013 to 2017:
All visitation - 4.5%*
International visitation - 5.4%
Domestic visitation - 6.2%
Overnight stays - 6.0%
*This figure includes day trips, representing a lower growth figure and a larger proportion of visitors to the Snowy Mountains.
Canberra Airport is between 1.5 - 2.5 hours' drive from the Snowy Mountains. The airport is the eighth busiest in Australia with daily flights to Canberra from Sydney, Melbourne, Adelaide, Brisbane, Newcastle and Perth. In 2016/17 passenger movements through the Airport recorded growth of 5.3% year-on-year.
A range of accommodation options can be found in the Snowy Mountains region with the most significant being hotels and holiday homes (not owned). Together these two property types account for 60% of nights spent in the region. Hotels and serviced apartments in the region has experienced modest revenue per available room (RevPAR) growth over the past four years, increasing on average by 0.9% per annum. Higher room rates have been the primary driver of growth with average daily rates (ADR) increasing 1.9% per annum.
Jindabyne - Berridale: HMSA Historical Trading Performance FY12 to FY16
|FY14||33.96% (-12.2%)||$202.73 (-5.2%)||68.9 (16.8%)|
|FY15||41.70% (22.8%)||$214.06 (5.6%)||89.3% (29.6%)|
|FY16||37.31% (-10.5%)||$230.09 (7.5%)||85.8 (-3.8%)|
The Snowy Mountains tourism industry is expected to attract continued investment against the backdrop of strong visitation numbers and new and improved visitor infrastructure. There is also a significant opportunity to capture a greater share of day visitors to encourage them to stay overnight and as travellers seek out adventure experiences. The planned upgrade of the Perisher ski resort should also provide a much-needed boost for the region.