City feels the hotel squeeze

HOBART CBD hotels are already close to being fully booked over summer, with Tasmania’s tourism boss saying the accommodation squeeze is putting the handbrake on growth.

Five hotels are set to open in Hobart in the next 18 months adding an extra 900 or so rooms, but that won’t come soon enough for the busy summer period.

On booking sites wotif and bookings.com, just a handful of hotels are available over the period between December 20 to January 6, many of them backpackers accommodation.

Tourism Industry Council of Tasmania CEO Luke Martin said those visiting for the Taste of Tasmania and the Sydney-Hobart Yacht Race had booked out hotels all over town.

“It’s affecting growth. It puts the brakes on for summer.

“Tourists want to come to Hobart, they want to go to the Taste but with the current bottleneck and no new rooms it won’t be possible.”

Tasmanian Hospitality Association general manager Steve Old said hotels in central Hobart were “chockers” and getting close to capacity, especially over Christmas and the New Year.

“They might be getting ready to put up the full signs in the city but if you look 15 or 20 minutes out of town there are still some great options,” he said.

Daniel Hanna from Federal Group said their three Hobart hotels had strong bookings.

“Henry Jones Art Hotel is booked out already and we are well ahead of where we were at the same time last year for both MACq01 and Wrest Point.”

An Airbnb spokesperson said that last year more than 5000 guests booked with Airbnb hosts in Hobart during the Taste of Tasmania alone and that was expected to grow.

“What this shows is that Airbnb and the traditional accommodation sector are working together to ensure we can continue to grow our visitor economy,” the spokesperson said.

The five new hotels around the city will open progressively from April creating 400 jobs.

Mr Martin said more projects were needed but believed a few factors were holding back growth including uncertainty over building heights and the perception the Hobart City Council is anti-development.

Co-developer of the Vibe Hotel in Argyle St Annalisa Doedens said it was on track to open by the end of April.

“We’re different to other developers in that we’re individuals rather than multinationals and we’re Tasmanian with a focus on using local products and services,” she said.