The image of Perthcapital ofWestern Australiahas been tarnished by the reputation of this metropolis of more than one and a half million inhabitants, considered to be the most expensive in Australia. Visit high cost of living in Perth reflected a city in the midst of an economic boom, thanks to the soaring raw materials. Perth is close to the country's major mining sites. Western Australia is the country's leading producer of minerals (including copper, gold, aluminium, nickel, cobalt and zinc), generating 40% of the country's exports.
But times have changed. The slowdown of the last two years in China has reduced demand for raw materials. At the same time, the addition of new hotel capacity has depressed the market. The local hotel industry is suddenly suffering from overcapacity, which is having an impact on room prices. According to a study by Deloittethe average price of a room in Perth has fallen to its lowest level since the start of the year. lowest level for 12 years. The fall in the hotel occupancy rate is linked to the more difficult economic conditions in the provinces, but also to more intense competition from alternative accommodation of the Airbnb. According to some experts, there are some 4000 flats in private homes available for rent. "Perth's hotel industry will continue to suffer doubly as a result of increased competition from new entrants and moderate growth in demand." the report predicts.
In 2016, the local hotel industry posted an occupancy rate of just 80% compared to 88% for Melbourne and even 89% for Sydney. This rate has continued to fall since the start of the year. In June, it fell to 75.6%. Last year, six hotels opened their doors. Among them, the Crown Towers - first six-star hotel The Peppers Kings Square, Tribe Hotel, Fraser Suite and Quest Adelaide Terrace are just some of the high-end establishments, which will add some 1,400 rooms. By 2020, an additional 4,000 rooms will be added to the existing hotel stock. A further 2,700 rooms are expected to be added by 2018. Hotel projects in the centre of Perth include the 450-room Avani hotel and hotel residence, a 240-room Ritz-Carlton on Elizabeth Quay, while Fremantle will see the opening of a Doubletree by the Hilton Group.
a boon for business travellers
This difficult economic climate for the city's hotel industry is a godsend for business travellers. But also for Tourism authorities in the State of Western Australia. This summer, the State decided to launch a two million Australian dollar (€1.3 million) marketing campaign to encourage visitors. "We used to have a reputation for being expensive and difficult to access, and for not offering the highest standards of quality. But all that has changed, and we need to communicate that.acknowledges the Western Australian Minister for Tourism, Paul Papalia. At a recent presentation in Singapore, the Minister highlighted the transformations that the city is undergoing, with new bars and restaurants, new cultural spaces and a new stadium, enabling Perth to reposition itself particularly in the MICE market.
On the air transport front, thePerth airportfourth in Australia with 13.62 million passengerswith 4.4 million international passengers in the 2016/2017 financial year, is hoping to attract new international routes. The government is working to increase airline access to Western Australia. Additional flights have been launched this year from Singapore. New flights will connect Perth to Shanghai, Beijing and Japan. A major event for the destination will be the launch next March by Qantas of the first daily non-stop service from Perth to Londonalso the first non-stop service between Australia and Europe. The flight will last 5 p.m. and will be operated by Boeing 787 Dreamliner with a capacity of 268 passengers in three classes (economy, premium economy and business). The first flight will leave London on 23 March and appears to be fully booked. Perth is set to become a new Qantas mini hub to the rest of Australia instead of Dubai or Singapore. In addition, the flight continues to Melbourne, saving an hour on their current route via Dubai. Western Australia currently has a 12.5% market share of all international arrivals. Of this, Europe generates 30% of all overnight stays and 24% of all arrivals.
