The decline in Western Australia’s resource sector has dropped hotel prices in Perth, enabling the capital to open up to a new slew of tourists by shaking off its reputation as an expensive city.
According to a PerthNow report, the average price of a hotel room in Perth this month was recorded at $185 a night, the lowest in 2 years, representing a 17% drop. Trivago’s latest hotel price index puts the average Perth hotel room rate in 2013/14 at $208, a 5% drop year-on-year and the biggest decline of any Australian capital city.
While Perth accommodation prices still reigns supreme over other cities – Darwin ($201), Sydney ($199), Melbourne ($187), Brisbane ($184), Canberra ($181), Hobart ($166) and Adelaide ($158) – the Perth accommodation sector rates have remained stagnant while other cities have upped their prices.
“Although Perth is currently one of the most expensive capital cities for accommodation in Australia, the trend in Perth contrasts from other cities like Melbourne, Hobart and Darwin, which have seen price increases,”
Trivago said.
Tourism Council WA chief executive Evan Hall attributed the rates drop as a result of a decline in business travel caused by the resources sector slowdown, however the bonus was that lower prices had made Perth more competitive as a tourist destination, with the number of price-conscious leisure visitors up about 10%.
For the 12 months to March 2014, 32,000 additional international visitors travelled to Perth, compared to the same period last year.
Mr Hall said he expected room rates in Perth to fall further following considerable investment in new properties planned for development in coming years.
Currently, more than 30 hotels and serviced apartments worth $3.3 billion are under development or consideration, potentially adding a further 5000 rooms to the 10,800 rooms already available in Perth, the paper reports.
Crown Towers Perth
Noteworthy projects include the Burswood Crown Towers with a price tag of $568 million to the swanky Ritz Carlton at Elizabeth Quay estimated to cost $350 million. Deloitte has predicted room rates to bounce back 4.6% over the next 3 years.
“Perth is the most isolated capital city in the world and if we think of it in that context, Perth is competitively priced when compared to other Australian capital cities as well as major international cities like London, New York and Paris,” Australian Hoteliers Association WA deputy chief executive Paul Brockschlager told the paper.
“Surveys in the food and beverage industry have revealed WA profits are no higher than in the east. You’ve only got to read the glowing review of Perth in the New York Times to realise that, when you get here, you’ll see that you get what you pay for – our offering is world class.”