Accor predicts its Perth hotels could return to pre-pandemic levels by March 2023, following reports of sustained recovery in its Western Australia operations.
Accor’s Perth hotels reached 66% occupancy by the end of June 2022 – five percentage points short of June 2019 – while average rate exceeded the pre-pandemic level.
Regional Western Australia attracted even higher average rates and an occupancy level of 65% in June 2022. The standout hotel was Pullman Bunker Bay Resort in the Margaret River region, which performed over 29% higher in June 2022 compared to June 2019.
“Our regional network was relatively well insulated during the pandemic because closed borders created high levels of intrastate demand, and now it is time for our city hotels to rebuild their market base,” said Accor Pacific CEO, Sarah Derry, pointing to the importance of city-based events.
“It will be important for the State Government to actively drive growth for its CBD businesses through attracting more major events and conferences to the city. Cities around Australia and the world are seeking major events because of their revenue generating potential and Perth will need to ensure it has a high visibility amongst potential events and conference organisers.”
With 25 hotels and resorts operating across the state – employing more than 900 people – the company has witnessed strong demand in leisure travel, the revival of business travel and an increase in international flights.
Derry says, however, that the tourism industry will need the support of government to drive tourism and the establishment of new markets such as India.
“It is encouraging to see that Western Australia is outperforming other states in terms of rebuilding international demand, but the forecasts indicate that arrivals will still only be 59% of pre-pandemic levels by the end of the year,” she said.
With the skills shortage continuing to place a strain on the hotel industry, efforts by Federal and State governments to make it easier for international workers to enter Australia and work for extended periods haven’t gone unnoticed.
“AHA WA has estimated that the state has a shortage of some 15,000 positions in the hospitality sector and that has been impacted by the slow recovery of the foreign student sector,” Derry said.
“Addressing the skills and employment shortage in the tourism and hospitality sector has to be a key priority for government at all levels. We welcome the WA Government’s announcement of a $3.9 million campaign to train more local hospitality workers because while an immediate increase in skilled migration is required in the short term, a ‘grow your own’ strategy is to address the shortage in the longer term.”
Since 2019, Accor has opened four new hotels in Western Australia, including Mercure Perth on Hay earlier this year, as well as Novotel Perth Murray Street, The Adnate Perth – Art Series, and ibis Styles East Perth in 2019.
With positive forecasts for the remainder of the year, Accor is confident in the opportunities in Western Australia.
“We are fortunate that Perth and Western Australia offers such outstanding tourism and economic potential,” Derry said.
“It is a state of opportunity in every way, but with competition in the sector at its most fierce we are going to require a comprehensive and collaborative response if we are to rebuild the sector fully to pre-pandemic levels.
“We believe tourism in Western Australia has a strong future.”