Today’s announcement of a $51.5 million economic stimulus package to bring people back to the heart of Sydney is a huge win for struggling CBD hotels and accommodation providers.

The State Government initiative which includes a $20 million voucher scheme recognises that the Sydney accommodation market is currently the worst performing city market in Australia with revenue declines of 67% and a forward booking rate of less than 10% for the next 90 days.

With JobKeeper ending within days, and the corporate market still seriously down, peak industry body, the Accommodation Association says the measures will help rebuild the domestic corporate and leisure markets and get people back into the heart of Sydney to dine, discover and stay.

Key stats:

The Accommodation Association represents close to 3,500 hotels, over 150,000 rooms and employed nearly 100,000 people across Australia (this is unfortunately now down to 58,000).

Prior to the closure of the international and state borders, the accommodation industry contributed $17 billion to the Australian economy.

Accommodation Association CEO Dean Long said, “For Sydney CBD properties where 80% of revenue is from international and corporate markets, today’s announcement could not have come at a better time.”

“Our hotels in these two major international gateways currently have a forward booking rate of less than 10% for the next 90 days and desperately need immediate support.”

“These timely initiatives recognize that the Sydney accommodation market is currently the worst performing city market in Australia with revenue declines of 67%. Sydney’s CBD hotels have a forward booking rate of less than 10% for the next 90 days. We need to do whatever it takes, especially with the imminent end to JobKeeper, to get people back into the heart of Sydney, spending money and having fun.”

“We look forward to these measures resonating with both domestic corporates and the domestic leisure market, building confidence in travel to Sydney, with city hotels significantly impacted by the continued closure of international borders. We also know that by getting Sydney’s heart beating again, there will be flow over benefits for the wider Sydney and NSW market.”

“The Association and our members continue to work closely with the NSW Government and Destination NSW to ensure the necessary support is directed to those initiatives and areas where the impact will be greatest.”

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