Australian holiday makers may be hibernating for the most part, but plenty of tourists and retirees still make use of the slower months to enjoy some time away. Owners of real estate in Australia used for holiday accommodation purposes could also find that now is a great time to revamp their offerings or increase their holdings, allowing them to be fully prepared for the summer season.
Domestic tourism in Australia is flourishing – which is great! With such a beautiful backyard, why wouldn’t you explore it? Unsurprisingly, many locals prefer the traditional family holiday – jumping in the car and camping or caravanning for a few nights. In fact, according to Tourism Research Australia (TRA), campgrounds experienced the largest growth by accommodation type in 2014. These types of holiday destinations experienced a seven per cent rise in numbers over the year.
IBISWorld research reveals that over the five years to 2014-15, the caravan park and campground industry is estimated to have grown its revenue by 0.8 per cent to reach $1.3billion. For those thinking of expanding their holiday real estate by purchasing land for sale, this could be the incentive you need to get going. That, and the fact that more growth is predicted over the next five years.
If you’re in the serviced apartments market, you’re also doing well. IBISWorld reports an increase of 2.3 per cent over the last five years to hit $3billion in revenue. With the volume of new units being built in the capital cities, this could be a great opportunity to buy into this kind of accommodation, which appeals to tourists, business travellers and more.
TRA also points out that while overnight trips for going to festivals, fairs or other cultural events increased by a massive 21 per cent for the year to 2.9 million, while day trips stayed flat in 2014 at 164 million trips. Australians are also becoming more connected, with travel to visit friends dominating the growth in holiday activity last year. Ninety-nine million nights were spent away catching up with our mates, inducing a nationwide spend of $12.3billion.
Aside from visiting friends, another large area of growth for the tourism industry has been travel for business. In fact, holiday or leisure overnight trips actually decreased slightly compared to 2013, showing that our priorities might be shifting. Of course, that’s not to say that domestic travellers aren’t taking in the sights or a couple beers at the local pubs when visiting friends or conducting interstate business.
IBISWorld notes that offerings such as serviced apartments fill that nice niche between camping and expensive holiday resorts that are ideal for these practical kinds of trips. As a middle-of-the-road offering, they provide adequate facilities, good location and at a relatively low cost for overnight accommodation.
If you’re an investor looking to get into or expand your portfolio in the holiday real estate market, now could be a very good time to do so. Aside from low interest rates and other beneficial economic conditions, the number of overnight trips in Australia is reaching new highs.
TRA reports that the 81.4 million overnight trips in 2014 represents the first time domestic overnight travel has broken the 80 million mark. Guests also stayed for longer, as the seven per cent increase in trips was more than matched by a nine per cent increase in visitor nights. Total spend by these travellers increased six per cent to reach a new record of $54.4billion for the year.
If you’re wondering what your next piece of investment real estate in Australia should be, a serviced apartment or other type of holiday accommodation could be high up on the list of possibilities.