Media release – Tasmanian Hospitality Association, 5 August 2024
Occupancy rates plummet as winter freeze hits
Tasmanian Hospitality Association chief executive Steve Old has stressed an urgent need for a strategic approach for the state’s hospitality industry following the release of the June 2024 occupancy statistics.
For the first time in three years statewide occupancy fell below 60 per cent, with the THA’s ‘Hotel Occupancy Report’ for June showing just 56.76 per cent of rooms across the state were filled. This marks the first time since June 2021 that occupancy has been this low, a significant drop that recalls the dark days of Covid-19 related border closures and restrictions.
The last instance of such low occupancy, excluding the pandemic period, dates back to August 2018, when rates were at 58.97 per cent. The recent figures also approach the lowest in a decade, recorded in July 2014 at 55.57 per cent.
Operators have been voicing their concerns in recent months due to underwhelming forecasted bookings and the worst fears have been realised.
“We are facing an unprecedented challenge in the hospitality sector,” Mr Old said. “To see our occupancy rates fall below 60 per cent for the first time in nearly three years is alarming.
“If this isn’t a wake a wake-up call for anyone outside our industry at the current plight we are facing, I’m not sure what is.
“Coupled with yet another spirits and beer tax hike which comes into effect today, the ongoing cost of living crisis and the sharp rises in energy, power and insurance prices, it is simply another blow to the sector.”
Mr Old highlighted the necessity of attracting more visitors during the winter months to boost the state’s tourism and hospitality sectors. He called for a concerted effort to introduce and promote winter events that would draw tourists to Tasmania.
“Tasmania has always been a unique destination, and our winter season holds a special charm. We need to leverage this by creating and promoting events that can attract visitors even during the colder months.
“It goes to show the impact winter festivals such as Dark Mofo really have on luring tourists to our state.
“Alongside our unique local experiences, there is a vast potential to turn this trend around. But we need the support and collaboration of local businesses, government bodies, and the community to make this happen.
“The time to act is now. We must come together to ensure that Tasmania remains a top choice for travellers, regardless of the season.”
The June figure was a 6.29 per cent decrease on last June. The north west coast was hardest hit region, with occupancy levels sitting at just 37.98 per cent, a 10 per cent hit on 12 months ago. The southern region (64.22 per cent) was 5.17 per cent less than June 2023, while 60.25 per cent of rooms in the north were filled, a slight increase of 0.12 per cent. The east coast had a 41.99 per cent occupancy rate.
The median room rate for the month was $205.05, which represents a decrease of nearly $5 from a year ago, while the average yield came in at $116.38, down $16 on the corresponding month.
School Students get immersive experience at 2024 THA Showcases
The next generation of hospitality workers will have the chance to experience cutting-edge technology as the popular Tasmanian Hospitality Association School Showcases commence this week.
This year the THA will be incorporating Virtual Reality (VR) headsets into the showcases, giving more than 650 students from around the state a unique opportunity to engage with the exciting world of hospitality through immersive VR experiences.
The THA School Showcases are designed to inspire potential future hospitality employees by providing students with a firsthand look at the diverse and dynamic opportunities available within the industry. By integrating VR technology, students will be able to virtually step into various roles in a safe and controlled environment.
“We are incredibly excited to bring VR technology to our School Showcases this year,” THA Workforce Development manager Jack Milbourne said.
“This innovative approach will not only captivate students but also provide them with a deeper understanding of the career paths available in hospitality.”
The VR experiences will allow students to:
- Step into a functioning cocktail bar and experience working in a busy environment.
- Move into a kitchen simulator, where they can slice bread, deep fry, cook steaks and work to recipes
- Gain insights into the skills and creativity required in hospitality roles
“Our aim is to make the showcases as interactive and engaging as possible,” Mr Milbourne said. “By using VR, we can offer an exciting and modern way for students to explore the industry, which we hope will ignite their passion for hospitality and encourage them to consider it as a viable and rewarding career option.
“The THA is committed to supporting the growth and development of Tasmania’s hospitality industry by fostering young talent and providing educational opportunities.
“Our School Showcases, enhanced by VR technology, represent a significant step towards achieving this goal.”
The first two-day showcase will be staged from tomorrow at the TasTAFE Drysdale Devonport campus.
Devonport (Devonport Drysdale, 20 Valley Rd 9.30am-11.30am & 12.15pm-2.15pm)
Mon/Tue Aug 5 & 6
Hobart (Hobart Drysdale Collins St 9.30am-11.30am & 12.15pm-2.15pm)
Mon/Tue Aug 12 & 13
Mon/Tue Aug 19 & 20
Launceston (Launceston Drysdale, Paterson St 9.30am-11.30am & 12.15pm-2.15pm)
Media release – Dean Winter MP, Labor Leader, Shadow Minister for Tourism & Hospitality, 5 August 2024
New ships will boost the Spirits of Tassie tourism operators
A boost in visitor numbers coming in on the new Spirit of Tasmania vessels is a tremendous opportunity for Tassie tourism operators – but they need certainty about when the ships will be in operation to make the most of it.
The THA’s latest data shows occupancy rates for Tasmanian accommodation fell to 56.7 per cent in June – seven per cent down on the year before and 15 per cent down on 2022 levels.
After the industry received assurances that the new ships would be sailing this summer, many venues are banking on increased passenger numbers helping to provide a boost after a difficult winter period.
When they do start bringing more cars and caravans to the state, the new Spirits are set to bring with them a $350 million boost to the Tasmanian economy.
This boost will be good for business, and good for jobs – particularly in Tasmania’s world-renowned tourism and hospitality sector.
But with significant doubts about the construction timeline for new wharf infrastructure in Devonport for the ships to load and unload, the actual date the new ships will start sailing remains unclear.
The new Spirits are a hugely exciting prospect for Tasmania and will help take our state’s reputation as a world-class destination to the next level. Tourism operators need certainty about when this boost is coming, so they can plan properly to make the most of it.
