AUSTRALIA | Short rental accommodation will be a crucial part of NSW's tourism future following a recent report into the state's tourism strategy.
Short term rentals are set to play a major role in accommodating tourists and workers as the NSW Government strives to reach its ambitious new visitor spend target of AUD $91 billion by 2035 but haven’t been included in a review of the state’s tourism strategy.
Yoav Tourel, Chairman of the Australia and New Zealand Short Term Rental Association (ASTRA), welcomed the government’s review of the NSW Visitor Economy Strategy, which recommended NSW adopt an experience-led approach to boost market share and increase regional tourism.
Tourel said the short term accommodation industry is ideally placed to help deliver the authentic connections with local culture, stunning landscapes, delicious food and enriching, memorable moments, as the report outlined that NSW needed to meet changing visitor expectations.
He was also encouraged by the NSW Government’s commitment to enhancing accommodation quality across regional NSW and increasing the number of available rooms in Greater Sydney to accommodate the targeted increase in visitors.
“Short term rentals offer some of the best quality accommodation across every part of NSW and ASTRA members are always striving to improve standards for guests, many of whom actively seek a unique experience rather than a standard hotel room,” said Tourel.
On this basis, he said it was unfortunate that short term rentals were not mentioned in the review of NSW’s Visitor Economy Strategy, which calls for 40,000 new hotel rooms to be built over the next decade but doesn’t raise the alternatives.
“It is vital that the NSW Government considers the contribution of short-term rentals to NSW tourism industry and includes the sector in its strategic planning, especially in regional areas where accommodation is often limited and variable in terms of quality.”
As part of any strategy, Tourel said the NSW Government, which administers the statewide short-term rental register of around 50,000 properties, should also carefully consider the impact that bed night caps will have on tourism numbers.
“Any regulation that decreases the accommodation supply in popular areas such as the room caps which were recently imposed in Byron Bay mean less tourists will be able to stay there and will force up the prices of available rooms,” Tourel said.
Key elements of the NSW plan include boosting aviation capacity in key domestic and international markets, leveraging leisure events to grow seasonal visitation and showcase NSW’s strengths.
It also outlined the need to dominate Australia’s business events sector, capitalise on NSW’s status as the top destination for international students, and foster a diverse, skilled, visitor economy workforce.
The NSW visitor economy is the biggest in Australia, achieving a record AUD $53 billion in expenditure in FY24 and employing almost 300,000 workers.
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