- Hotel occupancy in Australia has been drastically dropping as a result of the recent COVID-19 lockdowns around the country
- Markets with lengthier restrictions had occupancy levels below 20 per cent, according to an STR data snapshot taken the week ending August 1
- The Darwin area had the highest occupancy rate in Australia for the week, at 65.4 per cent
- Queensland was second with 61.8 per cent, followed by Perth and Brisbane with 48.1 per cent and 44.7 per cent, respectively, during the week
Australia’s hotel occupancy rate has been rapidly declining amid the recent COVID-19 lockdowns around the country after being one of the world’s highest in early 2021.
Data from STR from the week to August 1 shows markets with longer restrictions have had occupancy levels below 20 per cent.
The STR-defined Sydney Surrounding market, as well as Sydney, had 15.6 per cent and 15.8 per cent occupancy levels, respectively, during the week of July 26 to August 1. They were the lowest weekly values in each market for 2021.
STR’s regional manager for the Pacific region Matthew Burke said new and extended restrictions had affected performances in recent weeks.
“Although winter is likely a factor for some of the decline, these new restrictions across state borders have meant that a lot of travel is simply not possible,” he said.
The extended lockdowns in Sydney and most recently in Brisbane have led to airline capacity shrinking dramatically, according to Mr Burke.
“Qantas, for instance, went from operating at 100% domestic capacity in May to less than 40% in July,” he said.
“For hotels, STR’s latest Forward STAR data shows Sydney, Melbourne and Brisbane with lower levels of occupancy on the books at the start of the month than compared with the same time last year.
“In markets which are open, a renewed push toward intrastate travel has commenced with tourism voucher campaigns launching in Tasmania and the Northern Territory, with others possible to help stimulate demand.
“For example, in Adelaide, Friday nights show the highest occupancy on the books with the legacy voucher campaign providing that base stimulatory demand.”
Adelaide (30 per cent), Melbourne (27.1 per cent) and Canberra (21.2 per cent) all had relatively low occupancy levels for the week ending August 1, despite being up week over week.
“Like the Northern Beaches cluster in December and January, Canberra’s performance is closely tied to Sydney’s openness,” Mr Burke said.
The Darwin area had the highest occupancy rate in Australia for the week, at 65.4 per cent. In late May, the market’s weekly occupancy reached 82 per cent.
Queensland came in second with 61.8 per cent, followed by Perth and Brisbane with 48.1 per cent and 44.7 per cent, respectively, during the last week of July.