According to the new American Express 2008 Asia Pacific Corporate Hotel Rate Projections and Market Forecast, demand for hotel rooms will outstrip supply in all major cities.
Developers in the major markets of Sydney and Melbourne – which were both bruised by oversupply following the Olympic Games and Commonwealth Games respectively – have recently shied away from hotel development, particularly for 5-star sector.
The Tourism and Transport Forum said the number of hotel rooms added to metropolitan Sydney increased 1.3 per cent for the year to September 2007. This compares to 5.3 per cent in Brisbane.
“The bottom line is Sydney needs more, particularly five star hotels,” TTF national tourism manager tourist investments Evan Hall told the Australian Financial Review on Wednesday. He said the harbour city is unlikely to reach the NSW government’s forecast of achieving 10 million visitor nights by 2010, if they aren’t built.