Demand for tourism assets rising as entertainers return to Australia

Tourism assets are seeing demand return as a host of high-profile artists and entertainers make their way back to Australia.

According to Ray White Head of Research, Vanessa Rader, the price of hotel rooms can increase as much as 300 per cent when entertainers like Taylor Swift come to town. She said last year the FIFA Women’s World Cup, UFC and Formula One also drew huge fan numbers leading to increased demand for accommodation.

“Last year, concerts such as Harry Styles, Ed Sheeran, Paul McCartney and Coldplay saw hotel rates soar, and this year, Swiftie fever has taken over, setting new benchmarks for hotel rates,” Ms Rader said.

“With fans travelling internationally and interstate to see the pop princess, rooms across Sydney for the weekend have skyrocketed as much as 300 per cent compared to the average Sydney room rate achieved last February of $287 per night.”

Ms Rader said Sydney locations around Olympic Park had been popular with tourists, especially with multiple acts on the same weekends seeing rooms reach $1500 per night. Ms Rader said Taylor Swift’s visit to Melbourne also coincided with Valentine’s Day, making it a profitable period for hotels.

She said occupancy rates in the CBD were near capacity and available rooms were seeing prices reach $900 per night and above, which is well above the $220 per night average recorded at the same time last year.

“Melbourne, which is no stranger to an increase in international room night demand, is coming off the back of the Australian Open season, which saw January room rates jump also,” Ms Rader said.

She said Brisbane, Adelaide and Perth have also seen a surge in demand for hotels with major events like the WWE and P!nk seeing huge demand which will stimulate the local economy and hotel sector.

“Quality stadium facilities across the states are resulting in greater uptake of travelling artists and major sporting events to these locations,” Ms Rader said.

According to Ms Rader, the increase in demand for hotels has been occurring right around the world. “While tourism activity has rebounded post COVID-19, with increased flight routes and room occupancy, major events continue to drive up prices internationally,” she said.

“The NFL Super Bowl is another example, stimulating the Las Vegas economy and growing room rates to more than 2.5 times their usual rate, and 40 per cent greater than last year’s average room rates achieved at Arizona’s Super Bowl.

“Other major international events such as the inaugural F1 race in Las Vegas late last year have also buoyed tourism spending, occupancy, and average daily room rates by as much as 400 per cent.

“If you are looking for a room during the Paris Olympics this year, prices have more than tripled for the opening ceremony, and with 15.3 million visitors expected, competition to secure the 134,000 hotel rooms in Greater Paris will see these rates continue to climb.”