The Horwath HTL December 2024 Quarterly Hotel Market Outlook provides a comprehensive analysis of the Australian hotel market, focusing on key capital cities and regional destinations. The report evaluates economic conditions, tourism trends, and hotel performance indicators such as occupancy rates, Average Daily Rate (ADR), and Revenue per Available Room (RevPAR). It highlights how the industry is recovering post-pandemic, with international travel rebounding and domestic tourism stabilizing. Additionally, it examines macroeconomic factors, including GDP growth, inflation, and employment trends, which influence demand for hotel accommodation. The outlook for 2025 and beyond remains cautiously optimistic, with steady improvements expected across most markets despite ongoing challenges such as inflationary pressures, global economic uncertainty, and shifting travel behaviors.

Australia’s GDP growth for FY 2023-24 is forecasted to slow down to 1.2%, a significant drop from 3.3% in FY 2022-23. The unemployment rate is expected to rise to 4.1%, with the population projected to expand by 485,000 people and more than 235,000 individuals joining the labour force. Continued inflationary pressures and a volatile geopolitical environment pose challenges to tourism recovery, impacting travel intentions and cost of living.

As of June 2023, Australia’s GDP growth is forecasted to slow to 0.9% in FY 2023-24, down from 3.1% in FY 2022-23. The unemployment rate is expected to rise to an average of 4.1%, with the population expanding by 466,000 people and over 300,000 new labour force entrants. International tourist arrivals are steadily recovering, particularly from South Asia, Middle East/Africa, and Oceania. Northeast Asia is also showing recovery following the reopening of Chinese borders. International visitor numbers are expected to reach pre-pandemic levels by 2024.

The March 2023 edition of the Horwath HTL Quarterly Hotel Market Outlook provides an in-depth analysis of the Australian hotel market, including macroeconomic and tourism contexts, key trends in hotel performance, and detailed outlooks for various regions. This summary highlights the significant findings and trends outlined in the report.

Australia’s hotel market in Q3 2022 showed signs of recovery as international borders reopened in December 2021. The Australian business outlook forecasts growth in 2022-23 with an unemployment rate of 3.7% and an expected population increase of 321,000. However, the recovery faces challenges from geopolitical tensions, rising inflation, and interest rates.