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Investor confidence buoyant in Australia's hotel industry



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A U S T R A L I A N H O T E L S A S S O C I A T I O N

24 Brisbane Avenue Barton ACT 2600 · PO Box 4286 Manuka ACT 2603 · Australia email: theaha@ozemail.com.au · Facsimile: (02) 6273 4011 · Telephone (02) 6273 4007

Richard J Mulcahy National Executive Director

Media Release 1 September 1999

INVESTOR CONFIDENCE BUOYANT IN AUSTRALIA’S HOTEL INDUSTRY

93.6 per cent of Australia’s hoteljers believe that current business conditions in the industry are favourable, according to a study released today by the Australian Hotels Association (AHA).

This compares with 82.7 per cent confidence level in January this year and 77.2 per cent in January 1998.

“The overwhelming majority of respondents are positive and have become increasingly positive over the past 18 months,” the National Executive Director of the AHA , Mr Richard Mulcahy, said.

“Similarly, 85.1 per cent of those surveyed believed the climate for hotel investment is positive, compared with 74.3 per cent in January,” Mr Mulcahy said.

“Taken all together, this is a glowing report about an industry which is much more confident about its present and future,” he said.

Mr Mulcahy said 4.3 per cent believed industry investment would be much higher in the coming quarter, 25.5 per cent thought it would be somewhat higher and 48.9 per cent through it would be about the same.

The survey, which measures over 20 key indices in the nation’s accommodation-hotel industry, was conducted in July by the AHA and the Australian Chamber of Commerce and Industry.

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Other findings of the survey are:

* 8.5 per cent believed their staff numbers would be somewhat higher while 83 per cent thought they would be about the same. * 2.1 per cent thought their own businesses were doing excellently. 17 per cent thought they were doing very good, 27.7 per cent though they were doing good and the same percentage said they were satisfactory. *4.3 per cent thought their sales levels were excellent, 17 per cent thought they were very good and 48.9 per cent thought they were good or satisfactory.

Mr Mulcahy said 95.7 per cent of hoteliers were confident that exchange rates, which are vital to the industry, would rise moderately or not at all.

“Moderate rises are also foreseen for interest rates and the current account deficit,” he said.

Finally, respondents thought that sales and profits would improve slowly.

End.

Media inquires: Please contact Mr Daniel Leesong, Public Affairs Manger Ph: (02) 6273 4007, 0417 253 753.

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