Tourism Hotel Market Outlook

Analysis

Tourism and Hotel Market Outlook 2022 - Edition 1

Pent-up demand drives initial bounce on the road to recovery

The lifting of Australia’s international travel ban in February 2022 was a critical milestone in the recovery of the country’s tourism and hotel sectors, as the nation reopened to international visitors after being closed for almost two years.

But the devastating cumulative losses experienced by the industry as a result of the pandemic have been significant. From March 2020 to the end of 2021, Australia lost $147 billion in domestic and international tourism expenditure.

It is clear from the rebound in travel seen at the lifting of each subsequent set of restrictions that the need and desire to travel persists, which has encouraged businesses across sector to be both resilient in the face of the many challenges over the last two years.

While the world is learning to live with COVID, with a welcome increase in activity across the sector, there is evidence that some consumers are not yet ready to travel. Concerns about inflation and cost of living are also high on the radar of consumers, however not yet significantly impacting intentions to spend on travel.

The balance of 2022, and 2023 are expected to see a continuing recovery of the domestic travel market to pre-pandemic levels, with the rebuild of the inbound market to take place over the next two to three years.

The forecasts include consideration of global economic conditions, industry capacity and consumer sentiment among other factors. However a downgrade in the prospects of the global economy, higher and more persistent inflation and energy costs, a further escalation of geopolitical tensions and the ever-present risk of new variants or other pandemics represent further downside risks to the recovery of global tourism, with flow on impacts to the Australian tourism market.

Tourism and Hotel Market Outlook - Edition 1, 2022


About the report

The Tourism and Hotel Market Outlook is our leading tourism publication which provides insights into the issues confronting the Australian tourism and hotel sectors. The outlook reflects in-depth analysis of recent macroeconomic trends and the underlying drivers across both the domestic and international tourism sectors. The hotel sector outlook includes a review of trends, the expected pipeline of new hotels and provides a three-year performance forecast for the country’s major hotel markets.

Accompanying the public report are hotel forecasts delivered in an interactive Tableau dashboard which covers a series of topics including a recovery tracker, the macroeconomic outlook, the market performance and the hotel market outlook including RevPAR, room rate and occupancy for each of the eleven hotel markets including all capital cities, Gold Coast, Tropical North Queensland and Western Sydney.

To purchase the hotel market forecasts

Thank you for your interest in purchasing the 2022 edition 1 of the Tourism and Hotel Market Outlook. 

Please contact Adele Labine-Romain, Travel, Hospitality and Leisure Lead Partner for purchase.

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