There has never been a better time to consider investing in New South Wales’ hospitality industry, and in the Newcastle area in particular. Business is booming, the government is getting involved, and there are plenty of good properties on the market. Here is what you need to know about the visitor economy outlook.
Business overview
National factors
Hotel sales in Australia were solid during 2018, especially in the second half of the year. This trend is driven by anticipated growth in the tourism industry and in the overall economic climate of the nation. The Australian dollar has been supportive of the tourism industry and looks to continue that trend.
Within the nation, the economy is sending signals that are very positive for tourism growth. These signals include strong jobs growth, a rise in buying power, and more positive consumer sentiment. National economic growth should continue at around three percent, with New South Wales coming in third among the territories in terms of anticipated growth.
International factors
International factors also affect the outlook for tourism. India and China continue to nurture strong tourist populations. In the United States, a stronger economy is offering more disposable income and enabling more people to consider traveling abroad.
Though tourism from China over the last two years has been lower than projected, it is still increasing year on year. Visitor arrivals from India have doubled in the past six years, and there is solid, steady numbers growth from Japan, Korea, and the United States.
Government involvement
Late in 2018, the government of NSW set an objective they hope to achieve before 2020: triple tourist spending in the state. There are several prongs to this push, including ad campaigns to promote tourism and a focus on regional areas like Newcastle.
NSW is blessed with amazing diversity and this in turn offers potential for tourism. The government is focused on promoting agricultural and nature-based tourism, and a newly appointed NSW taskforce has been authorized to unlock funds for local councils and remove barriers to business.
The plan also calls for building new attractions and experiences that will appeal to niche groups and crack down on scams that take advantage of visitors. The new Western Sydney Airport, scheduled to open near 2026, will also allow for far more visitors to come to the region.
Past indicators
Whenever a government announces an initiative to spur tourism, the question naturally arises whether or not they will follow through and whether their methods will be effective. The history of NSW tourism suggests that there is little to worry about.
The NSW government has been deeply interested in tourism since early in the decade. The intention was to see whether tourism could really be a viable driver for state industry. Since 2011, performance in this sector of NSW’s economy has been robust. There has been so much success, in fact, that the number of overnight visitors grew by 36 percent. More than that, those visitors were spending more. The average amount that visitors spend when they come to the state has increased by 54 percent since 2011.
Market opportunity
There has never been a better time to look at hotels for sale in Newcastle NSW. This vibrant area is poised to see some of the largest increases in the visitor economy of anywhere in the nation. Not only is the city benefitting from NSW state initiatives, but also from local council initiatives.
The Newcastle area offers experiences that appeal to domestic and international visitors alike, including parks and reserves, beaches, water experiences like wakeboarding and surfing, and plenty of active lifestyle options like mountain biking and skydiving.
In addition, the city hosts sporting events, enticing festivals, and is home to a number of heritage sites, museums, and galleries. Boutique shopping and quality food offerings also make Newcastle a prime spot to attract visitors from everywhere in the world.
