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Strong demand in Mackay

Strong accommodation demand and limited new supply is bolstering the fortunes of the Mackay hotel sector according to a new market review from CBRE Hotels.

Growth in the region has been accelerated by the mining industry but – unlike other resource-reliant centres – the Mackay market has been particularly robust given its non-reliance on any one industry according to CBRE Hotels Director Neil Scanlan.

“Mackay is one of the only areas that is non-reliant on one single industry but has a balance that will see growth continue for many years,” Scanlan said.

“The region’s growth is fuelled by the boom in the mining and gas industries, resurgence in agribusiness, growth in tourism and an emerging marine sector. Recent announcements, including plans to further develop the Galilee basin to Abbot Point coal terminal rail connection, have provided an additional boost to confidence in the future of this dynamic regional centre.”

The CBRE Hotels review highlights that Mackay hosts much of the engineering, manufacturing and mining services industries supporting the regional economy. This has underpinned the strong performance of the accommodation sector, with 2012 seeing a total of 2.213 million visitor nights, up 10% from 2011.

At the same time, Mackay has witnessed considerable growth in average occupancy levels which have risen from 66% in 2010 to 77% in 2012. Passenger movements at Mackay Airport currently exceed 1.1 million in 2012 which indicates a 14.6%, ten-year growth and is forecast to grow by a further 17.3% over the next ten ears.

The town is known as the “sugar capital” of Australia, with the sugar industry injecting $1.5 billion annually to the local economy. It is also recognised as the gateway to the Bowen and Galilee mining and gas reserves which is increasingly taking on more long term national and international mining commitments.

Against this backdrop, Scanlan said the local tourism market was seeing more growth and this was underpinning buyer interest in available investment opportunities such as the Coral Cay Resort which is being offered for sale through CBRE Hotels.

This is one of the only large scale accommodation facilities to be offered for sale in Mackay in the past decade.

“The opportunity to purchase a freehold going concern property of this size and quality in Mackay has not been available for many years,” Scanlan said.

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