Tourism Investment Monitor 2019–20

Tourism investment pipeline

About the pipeline

The 2019–20 tourism investment pipeline consisted of 255 projects with a value of $43.6 billion. This was slightly lower than the value of the 2018–19 pipeline of $45.3 billion (down $1.7 billion).

Investment sectors

Across the 3 tourism sectors, the pipeline was split by:

• accommodation – 168 projects valued at $11.1 billion, with the potential to add 27,200 rooms to accommodation supply
• arts, recreation and business services – 69 projects valued at $14.3 billion
• aviation – 18 projects valued at $18.2 billion.

Project phases

The pipeline includes 3 phases:

• proposed –all projects that are mentioned but may not have much information or formal plans in place
• planning – projects which have begun formal planning such as appointing developers and architects or applying for council approval
• under construction – projects where the ground has been broken on the construction site.

Projects that have recently opened, or been abandoned or deferred, are deemed to have exited the pipeline in that year.
In 2019– 20 there were:

• 26 projects valued at $9.8 billion in the proposed phase
• 138 projects valued at $15.6 billion in the planning phase
• 91 projects valued at $18.2 billion in the under construction phase

Most of the projects in the accommodation and arts, recreation and business services space were in the planning phase. However, due to the long-term nature and complexity of aviation projects, most were under construction.

Mixed-use developments

The investment pipeline excludes mixed-use developments. These are a combination of short-term accommodation, and residential, commercial or leisure spaces. Although they were not included in the pipeline, mixed-use developments offer significant value to Australian tourism.

Over the last 3 years, mixed-use investments included more hotel rooms than stand-alone accommodation. In 2017–18 mixed-use investments surged. This reflects the growing popularity of these investments from the Asian market.

In 2019–20 there were 148 mixed-use developments valued at $57.9 billion with the potential to add 29,800 rooms to accommodation supply. By comparison, the 2018–19 pipeline contained 150 projects, valued at $55.8 billion with the potential to add 30,600 rooms. While the value of mixed-use developments increased by $2.1 billion in 2019-20, the overall rooms and number of projects has fallen. This indicates greater investment in the non-tourism component of these developments such as residences and offices spaces.

The number of rooms fell slightly in 2019–20 compared to 2018–19. However, 2,300 rooms were introduced into accommodation supply due to completions.