HOTEL rates in Sydney are expected to be at their lowest ever level over the next couple of years due to the hotel-building boom to cater for the 2000 Olympic Games, which has created an oversupply of rooms.
Tourism New South Wales chief executive Tony Thirlwell said: “The outlook is good for customers but times will be difficult for hotel owners in the short term and prices will be very competitive.”
Australia’s largest hotel company, Accor, said that while it will prove difficult to secure accommodation during the six-week period ofthe Games next year, allocations for the remainder of 2000 will be inexpensive and readilyavailable.
General manager communications Peter Hook said: “There is going to be oversupply, which is good for tourists. Next year’s rates will be at historically low levels.
“In Sydney we have just opened a four-star Mercure hotel with rates from about £40 per night.
“Rates are the same as about 10 years and, allied to that, we have ridiculously low air fares. There are tremendous opportunities outside the six weeks of the Olympics.”
More than half of all hotel projects due to be completed in Australia this year are located in New South Wales.
Thirlwell said: “Studies showed that 6,000 new rooms were needed by the time of the Games but by September 2000 there is going to be an extra 11,000 rooms added since 1995.”
He said the majority of new hotels are three star with room rates of around £330-£41. Four-star tariffs are about £66-£75 and five-star in the £100-£150 range.
“However, although we have an oversupply in the short term we will need the rooms in the long term if the Tourism Council’s forecasting figures come to fruition and we see a doubling of visitors by 2008 to 8.4m visitors,” said Thirlwell.
New South Wales receives around 58% of Australia’s total visitors, which means between 4.9m and 5.2m overseas visitors.
Thirlwell added: “Although there will be a shortage of rooms next September for the Olympics, we want to build awareness of Sydney as an affordable destination during the remainder of 2000 and beyond.”