Facts and figures for hotel performance in Brisbane, case for resort tax and need for further tourism promotion.

1. Brisbane hotels and the
tourism industry

2. Brisbane CBD Hotels 2000-08
Occupancy peaked in 2008 at 81.5%
RevPAR peaked in 2008 at $128.40 per
night
Room nights sold peaked in 2008 at
2.23 million

3. Brisbane CBD Hotels 2009-10
Occupancy fell to 74.2%
RevPAR fell to $113.34 per night
Room nights sold fell to 2.14 million

4. Brisbane CBD Hotels
Forecast to 2017
2017 Forecast Change 2010-17
Occupancy 77.9% +3.7%
RevPAR $118.36/night +$5.02/night
Room nights sold 2.86 million +720,000
Source: Dransfield Hotels, 2010

5. Gross Avg. Annual Income per Hotel Room ($)
2008 2009 Change
Gold Coast $42,985 $40,522 -6%
Cairns & TNQ $36,137 $28,200 -22%
Brisbane $55,730 $51,165 -8%
Queensland $42,572 $39,457 -7%
Hotel Occupancy Rates (%)
2006 2007 2008 2009
Gold Coast 70.8 72.9 71.5 69.9
Cairns & TNQ 67.3 64.2 60.9 53.1
Brisbane 81.3 81.5 77.8 75.1
Queensland 69.0 69.3 67.9 64.2
Source: ABS 8635.0

6. Change in Brisbane Room Rates &
Occupancy 1999-2009
occupancy % point change
room rate % change
20.0
11.0 10.0
7.0 7.0 6.0 7.0
10.0 5.0
1.0 0.1 0.0
-3.0
0.0 5.2
2.2 3.1 3.4 3.2
1.5 0.2
-0.6 -1.7
-10.0 -3.8 -4.2
-20.0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: ABS 8635.0

7. Return on Investment
Business Type (AUST) ROI 1998-2004
Tourism Businesses 11.8% pa
All Businesses 14.9%pa
(AEC Group, National Tourism Investment Strategy, 2006)
The tourism industry has been saved by
technology and innovation
Low cost airfares and accommodation
packaging
Online booking and virtual tours

8. International Visitor Arrivals to Australia and Shocks to Growth
6 30
25
5
LHS, Arrivals RHS % chg
20
Arrivals (millions)
4
Sydney Olympics 15
% change
3 10
5
2
0
1 Asian Financial Crisis -5
Pilots' Strike Sept 11 Bali SARS
Bombing GFC
0 -10
1981 1985 1989 1993 1997 2001 2005 2009
Sources: ABS Overseas Arrivals & Departures (ABS Cat 3401.0)

9. Domestic Visitors
QLD Regions 2000-09
1,000,000
Brisbane -0.6%pa
900,000
Gold Coast 3.3%pa
800,000
700,000
TNQ 0.7%pa
Visitors
600,000
500,000
400,000
Sunshine Coast 0.9%pa
300,000
200,000
Whitsundays 0.7%pa
100,000
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Year Ended
Source: Tourism Research Australia , Tourism QLD

10. International Visitors QLD
Regions 2000-09
6,000,000
Brisbane 2.4%pa
5,000,000
Visitors
4,000,000 Gold Coast -0.5%pa
3,000,000 Sunshine Coast 2.7%pa
2,000,000 TNQ -2.0%pa
1,000,000 Whitsundays 0.7%pa
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Year Ended
Source: Tourism Research Australia , Tourism QLD

11. Domestic Visitor Nights
QLD Regions 2000-2009
20000
18000
16000
Gold Coast 0.7%pa
14000 Brisbane 3.7%pa
Visitor Nights p.a. * ('000's)
12000
10000 Sunshine Coast 2.7%pa
8000
TNQ 0.6%pa
6000
4000
Whitsundays -0.3%pa
2000
0
98/99
00/01
02/03
04/05
06/07
08/09
Year Ended
* Visitor nights include all commercial accommodation premises, not visiting
friends or relatives, not children <14
Source: Tourism Research Australia , Tourism QLD

12. International Visitor Nights
QLD Regions 2000-2009
18,000,000
Brisbane 8.8%pa
16,000,000
14,000,000
Visitor Nights p.a. * ('000's)
12,000,000
10,000,000
Gold Coast 3.3%pa
8,000,000
6,000,000
TNQ 1.2%pa
4,000,000
Sunshine Coast 5.3%pa
2,000,000
Whitsundays 2.7%pa
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Year Ended
* Visitor nights include all commercial accommodation premises, not visiting
friends or relatives, not children <14
Source: Tourism Research Australia , Tourism QLD

13. Brisbane Airport
Recorded a minimal net loss of three
international inbound flights in its 2010 schedule
Gained flights from India, South Pacific Islands
and Thailand
Maintains 270 international inbound flights per
week, compared to 273 in 2008
International inbound seat capacity at a record
high of 55,071 per week (+10% over 2008)

14. The Introduction of a Resort Tax?
Common throughout the USA, Canada &
Europe (in the range of 2-14%)
It sits on top of a GST or VAT
All resort taxes in Australia deemed illegal with
the introduction of the GST in 2000
A resort tax of 2%pa in Brisbane would yield
$107m and 10%pa would yield $535m on
current accommodation turnover

15. Resort Taxes - Advantages
They do not burden the normal income tax
collection system but are a tax on
consumption
They do not drain state or local operating
budgets
They can be applied to the specific problem
area, i.e. marketing of tourism by directing
collections into relevant tourism authorities

16. Resort Taxes - Disadvantages
Any new tax is generally opposed on
principle, but this is not a tax on all taxpayers,
rather it is user-pays
There are additional administrative costs, as
with the GST
They can create market distortions if too
large and not widely applied

17. Resort Taxes in Florida
(introduced in1967)
Tax Percent
Municipal Resort 2%
Food & Beverage 2%
Tourist Impact 2%
Convention Development 2%
Tourist Development 1%
Enacted legislation to be used for:
• The creation and maintenance of convention centres, cultural/arts centres
•The enhancement and promotion of tourism
•Appropriate signage installation and maintenance

18. Australian Industry Size – Annual
Turnover 2007-08
Food & Beverage $72bn 9.0%
Tourism $75bn 9.4%
Retail $150bn 18.8%
Motor Vehicles $173bn 21.6%
Manufacturing $250bn 31.3%
Other – Education/Govt etc $80bn 10.0%
Total GDP $800bn

19. Annual Council Funding for
Tourism Marketing
Local Council Budget $ per capita
Brisbane $16.6m $9.20
Sunshine Coast $8.5m $27.50
Gold Coast $10m $20.00
Cairns $4m $2.60

20. Annual Federal Funding for
Tourism Marketing
Country Budget $ per capita
New Zealand AUD$190m* $45.25
Bali AUD$43m $31.70
Fiji AUD$29m $27.65
Australia AUD$169m $7.68
* Air New Zealand contributes $90m

21. Conclusions
In absolute terms, Brisbane attracts a greater
share of the tourism market than rivals Gold
Coast and Sunshine Coast
The tourism industry in Australia is
underfunded by comparison with its
contribution to GDP
A fresh approach for additional funding for
tourism marketing is needed.
A resort tax could be the answer

22. Also in the Latest Midwood Report
Population trends & forecasts
Non-residential building trends
Dwelling activity (approvals, commencements)
New apartment sales/stock survey QLD-wide
Regional tourism and accommodation trends
House & Unit price movements
General property & tourism market commentary

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