Hoteliers see better times near

THE Gold Coast recorded the worst hotel occupancy rates in the country during the coronavirus pandemic, but could be placed for the strongest growth once the Queensland border reopens next month.

Hotels and other accommodation providers across the city closed or reduced capacity in late March following state and federal directives for all nonessential businesses.

A number are preparing to open from today, including Gold Coast City Council tourists parks, and The Star Grand hotel on June 24.

Savills national director for hotels Adrian Archer said the Gold Coast market had been the hardest hit nationwide.

“Your occupancy is in single digits because what really drives the Gold Coast is the leisure industry,” Mr Archer said.

“What is propping up the other cities is a bit of quarantine and corporate business, particularly serviced apartments.”

Mr Archer said April occupancy for the Gold Coast hotel sector was 7 per cent, whereas Canberra was 13 per cent and Cairns 12 per cent.

But Mr Archer said the flipside was the Gold Coast would bounce back the strongest from the downturn.

“There is a lot of talk about international tourism on the Gold Coast but really it is still primarily domestic-driven. Those tourists who normally go to Bali can’t, so where else are they going to go?”

CBRE hotels national director Wayne Bunz was similarly upbeat.

“I’m very confident that the Gold Coast will do particularly well,” he said.

“Unfortunately, markets like Cairns will struggle where you have to fly because airline tickets are going to be expensive.”

Mr Bunz said demand was likely to be fuelled by the high number – up to 75 per cent – of Airbnb properties that had entered the permanent letting pool.

Accor boss Simon McGrath, who heads the largest hotel owner on the Gold Coast, welcomed the State Government’s decision to reopen the NSW border.

Mr McGrath said he expected to see a surge in bookings for Accor properties, including Mantra and Peppers, partly thanks to a lack of outbound travel.

“As the (international) border remains shut leisure destinations such as the Gold Coast will benefit,” he said.

However, he cautioned that leisure was just one part of the Gold Coast market.

“We are completely lacking in sports events, in conferences and entertainment events.

“The corporate market has not even decided what it is going to do.

“While we are seeing this flood of travel and to the naked eye it will look good, the industry will still be devastated because it has always survived on five to six major markets.”

Village Roadshow theme parks COO Bikash Randhawa said the Sea World Resort was booking some “solid numbers” for the school holiday period.

The Sea World Resort, which has 405 rooms, has operated through the coronavirus pandemic with 1.9 per cent average occupancy.

“It is great to start to see some normality return to the industry and we anticipate this will only get stronger once the bans are lifted,” he said.

A Gold Coast City council spokeswoman said its tourist parks had received 1900 bookings since the State Government released its “roadmap” for easing restrictions.

Kirra Beach, Tallebudgera Creek, Burleigh Beach, Ocean Beach and Broadwater Tourist Parks will welcome guests from today while Main Beach and Jacobs Well remain closed.

“We are having a staged opening of our parks with communal facilities such as pools, playgrounds, amenity blocks and recreational rooms remaining closed,” she said.

AS THE (INTERNATIONAL) BORDER REMAINS SHUT LEISURE DESTINATIONS SUCH AS THE GOLD COAST WILL BENEFIT

ACCOR BOSS SIMON MCGRATH