Tourism Investment Monitor 2019–20

Methodology

Data sources

Three data sources are used to build the tourism investment pipeline database that underpins this report. The 2 main sources are Deloitte Access Economics’ (DAE) Investment Monitor and STR Global Asia Pacific’s Pipeline Database. The third source is the investment authorities within state governments.

DAE’s Investment Monitor details the total investment chain from pre-approval through to completion. This covers a number of industries (including accommodation) in five project phases:

  • possible: projects that have been announced, but no early decision has been made on whether to proceed
  • under consideration: a decision whether to proceed is expected in the near future
  • committed: projects where a decision to proceed has been announced but construction has not yet started
  • under construction: where work has started on the project
  • completed: project has been completed

DAE’s Investment Monitor only lists individual projects worth $20 million or more and excludes land costs. It does not include the number of rooms to be built in specific investments.

STR Global Asia Pacific’s Pipeline Database provides a summary of the number of hotel and resort pipeline projects, and recently opened hotels. It also provides the number of existing hotels to give a picture of current and future supply within Australia. The database details the investment pipeline chain in four project stages:

  • unconfirmed: potential projects that remain unconfirmed at this time
  • planning: confirmed, under contract projects where construction will begin in more than 12 months
  • final planning: confirmed, under contract projects where construction should begin within the next 12 months
  • in construction: vertical construction on the physical building has begun, not including construction on any sub-grade structures. These include parking garages, underground supports/footers and other types of sub-grade construction
  • recently opened: project opened within the last 12 months

STR Global does not supply information on the value of all projects, but does include the number of rooms to be built.

We source project values from industry and media.

Input from state government investment authorities have provided additional insight for the tourism investment pipeline since 2016–17. This provides an additional layer of intelligence to help us compile a more comprehensive pipeline, with a focus on accommodation projects. We would like to acknowledge these organisations for their help:

  • Destination NSW
  • Department of Jobs, Precincts and Regions, Victoria
  • Department of Innovation and Tourism Industry Development, Queensland
  • South Australian Tourism Commission
  • Tourism Western Australia
  • Office of the Coordinator-General, Tasmania
  • Tourism NT, Northern Territory
  • Department of Trade, Business and Innovation, Northern Territory
  • VisitCanberra, Australian Capital Territory

Alignment of data sources

When we construct a tourism investment pipeline database for the Tourism Investment Monitor, we categorise DAE and STR Global’s project phases in the following way:

  • proposed: includes projects identified as ‘possible’ (DAE), ‘unconfirmed’ (STR Global)
  • planning: includes projects identified as ‘under consideration’ (DAE), ‘planning’ (STR Global), ‘final planning’ (STR Global), ‘committed’ (DAE), ‘in consideration’ (STR Global)
  • under construction: includes projects identified as ‘under construction’ (DAE), ‘in construction’ (STR Global)
  • recently opened: includes projects identified as ‘completed’ (DAE), ‘recently opened’ (STR Global).

Project thresholds

The primary threshold for projects is $20 million or more. The project values and pipeline progression are as at year ending June 2020.

Note that:

  • This is not an exhaustive list of current or potential development projects, and does not account for all tourism investments. It does include major investments that will impact on supply.
  • The pipeline excludes mixed-use developments, unless stated otherwise. This is due to difficulties in ascertaining the value of these projects to particular sectors.
  • Some accommodation projects included in this year’s accommodation investment pipeline may be part of a mixed-use development. We categorise projects as either stand-alone or mixed-use accommodation based on market intelligence and key data sources available at the time.