Western Australia is one of the oldest landscapes on earth and home to some of the world's most outstanding natural features and wilderness areas. The diversity of the bio-geographic regions contained within the state's 2.5 million square kilometres is unparalleled.
With a coastline stretching 12,500km long and a daily average of nine hours of sunshine year round, outdoor activities and adventures are always popular with visitors to WA.
World-class marketing and protection of Western Australia's unique natural attributes together with imaginative promotion of other attractions have resulted in consistent growth in recent years. For those seeking to invest in a growing tourism industry, considering the following attributes, Western Australia is the real thing.
- Strong government focus on building tourism market demand.
- Tourism development sites investor-ready, under the Landbank program.
- Air linkages through Western Australia continue to grow.
- Leading convention and exhibition travel destination in the Asia Pacific, with the new Perth Convention and Exhibition Centre.
Additional details on the factors underpinning the state's ongoing success are featured in the following sections.
Western Australian workforce
Sunny Perth is Western Australia's capital city and home to most of the state's 2.18 million people. Western Australia’s labour market has been exceptionally strong over the past four years and tourism generates a significant number of jobs in the State. The Western Australia Tourism Satellite Account Report 2006/07, notes that tourism is directly responsible for 4.2 per cent of all jobs in Western Australia, and is indirectly responsible for even more. The same report estimates that tourism resulted in the employment of 79,977 people in Western Australia. For every 100 people employed in Western Australia, around 6 are as a result of the tourism industry.
Western Australian economic overview
Western Australia’s strong and diverse economy has recently come to the forefront of economic activity across Australia with Gross State Product accounting for $ 146.4 billion, almost 13 .5 % of GDP in 07/08.
Western Australia’s key economic drivers are mining, manufacturing, construction, property and business.
With business costs amongst the lowest in the developed world and telecommunication costs amongst the lowest in the Asia Pacific region, Western Australia is an ideal business choice and world class business partner.
Western Australia’s stable Government, solid and reliable infrastructure and world class enabling technology are among the many reasons why companies choose to do business in WA.
From a strong mining, manufacturing and construction base, WA industry has diversified greatly in recent years and is now energetically embracing today’s modern driven economy, with innovation and a strong entrepreneurial spirit driving the next wave of trade and industry opportunities within the State.
Tourism’s direct contribution to Western Australia’s gross state product (GSP) in 2006–07 was $3.7 billion.
The total of direct plus indirect tourism contribution generated by tourism and non-tourism industries in the Western Australian economy was:
• $6.2 billion in GVA
• $7.0 billion in GSP
• 79,977 jobs
Overall, Western Australia offers:
- Strong economic growth performance.
- World-class industries in resources and agriculture.
- A proven track record of successful resource projects.
- A wealth of mineral opportunities.
- Politically stability and low sovereign risk.
- In same time zone as Singapore, China and Hong Kong.
- Extensive industrial land and infrastructure.
- Abundant and competitively priced energy.
For more information on Western Australia's economy, please click here
Perth hotel investment climate
The Perth hotel market has performed strongly for some time now with Perth being ranked in the top three most desired hotel investment markets in the HTL Capital Advisers 2008 Industry Survey.
Projects of strategic importance in Perth have attracted significant international investor interest creating an exciting business, tourism, residential and entertainment hub to put Perth in the international spotlight. This even more so as Australia’s hotel investment market changed from a sellers market in 2007, to a buyer’s market in 2008.
Confidence in Western Australia’s tourism industry is strong with some 86 projects worth $1.4 billion in tourism development and infrastructure improvements planned over the next few years according to the 2008 Tourism Accommodation Development Register.
In the 12 month period to June 2008:
- Perth ranked in the top two performing hotel markets in Australia, registering RevPAR growth of 19.7 per cent.
- Demand for accommodation (as measured by Room Nights Sold) has the highest growth in Perth increasing its Room Nights Sold by 6.9 per cent.
- Perth experienced the strongest growth in average room rates, rising by 16.2 per cent to $145.92.
- Strong demand continued to push up occupancy in the Perth City (total star graded) market, boasting the highest occupancy rate in Australia with a further 2.5 percentage point increase to 83.7 per cent occupancy.
Market fundamentals for Perth hotels are very strong with double digit yield growth over the last three years projected to continue for the next five years.
Source: Colliers International Spring Quarter 2008
Tourism arrivals and yields
Over the past 8 years (since 2000) the intrastate tourism market in Western Australia has achieved significant growth; in the year ending June 2008, intrastate spend in WA was over $2.1 billion with West Australians taking over 4.9 million trips in their own state. The intrastate market is set to gain further from increased aviation services. Qantas plans to increase its North West services within the state and Virgin Blue is to introduce services to Port Hedland and Karratha.
In the year ending June 2008, interstate visitor spend equated to over $1.1 billion with arrivals of 1.1 million.
International spend, visitors and nights reached record highs and grew well above the national average in year ending June 2008. WA is the only state in Australia to outgrow the national average in all three indicators. International visitors to Western Australia spent over $1.6 billion, up 14.8 per cent from the same time last year. The international market continues to grow for Western Australia and its proximity to Asian markets gives a key advantage over other Australian States. The United Kingdom, Singapore and Malaysia were the top three spending international markets into Western Australia for the same period.
Strong growth out of Singapore can be attributed to the commencement of Tiger Air services between Perth and Singapore in March 2007. This service has added an extra 1,260 seats a week on this route.
Additional details on the factors underpinning the state's ongoing success are featured in the following sections.
Source: Department of Industry and Resources, Chamber of Commerce and Industry