Rooms glut adds up to bonus for visitors

TOWNSVILLE has retained its title as having the cheapest hotels of any major centre in the country despite recording one of the biggest rises in room rates in 2017, according to a leading index.

Also, latest figures by Tourism Research Australia show visitor nights in the northern region based on Townsville dived more than 13 per cent to 3.59 million in 2017.

Hotels. com, which operates the Hotels Price Index, found Townsville took out the top spot for most affordable night’s stay for international travellers among the top 50 Australian destinations with a rate of $ 124.

The top average prices paid in Australia in 2017 went to Yulara ($ 360), Cradle Mountain ($ 260), Sydney ($ 232), Palm Cove ($ 230) and Whitsunday Islands ($ 222), while other most affordable destinations were Alice Springs ($ 125), Mackay ($ 126) and Darwin ($ 132).

According to Hotels. com, Townsville recorded one of the steepest rises in room rates, increasing 11 per cent to $ 124 in 2017, but it came after a 13 per cent fall last year.

Commenting on the figures, the general manager of Palmer St property Grand Hotel, Troy Scott, said Townsville had an oversupply of rooms.

Mr Scott said about 300,000 room nights a year – about a 10 per cent increase – had been added to the Townsville market in the past decade.

“There is significant oversupply which is why hotel rates are so cheap,” Mr Scott said.

But it also made Townsville one of the worst performing hotel markets.

Hotel occupancies in Townsville averaged 57.5 per cent this year, Mr Scott said.