More than two dozen general managers of Sydney’s three, four and five star hotels attended the breakfast hosted by Tourism Accommodation Australia (NSW).
TAA (NSW) director Carol Giuseppi said industry leaders had a positive response to the 2012 State Budget, which had addressed a number of areas of concern.
“What is particularly pleasing is that we have seen the Government focus on “building demand” in the tourism sector – something we have been wanting for some time,” she said.
“The need for more hotel rooms in Sydney’s accommodation sector is constrained by demand levels. The $125 million earmarked for Destination NSW in this Budget together with the $45 million investment in major events, will ensure that much needed demand is built in the market. This will support continuing investment in existing hotels in particular.”
Ms Giuseppi said the sector also welcomed a boost to regional tourism funding.
“NSW is very much a two-speed economy,” she said.
“Sydney’s accommodation hotels are performing much better than regional properties and an extension to the Government’s $5.1 million Regional Tourism Partnership Program will help provide security to the industry for a 12 month period while the Government is considering the recommendations of the Visitor Economy Taskforce”.
Last year TAA(NSW) commissioned AEC Group to produce the first extensive economic modelling of the Sydney accommodation market. This modelling reinforced that Government must do all it can to facilitate continuing investor confidence in the market by driving demand, both to ensure continuous upgrades to hotels and sustainable supply increases.
“The feedback from hoteliers recognised that Government has listened to this message and is committed to building demand in both the Sydney and NSW markets,” Ms Giuseppi said.