Blame miners for Aus hotel price surge

The Great Barrier Reef has become a popular destination for mining workers taking a break from work. Picture: Australia Tourism Source: Supplied

HOLIDAY accommodation prices across Australia have risen by more than 25 per cent in the past five years, thanks largely to the mining boom.

The cost of an overnight stay has risen by nearly $30 per night to around $140 on average at hotels, motels, resorts and serviced apartments, new research shows.

Queensland's Great Barrier Reef recorded the biggest jump, rising 74 per cent to $271 per night, according to the Australian Bureau of Statistics figures.

Prices in Outback NSW also soared by 65 per cent to $134 per night, while Queensland's Fitzroy region rose nearly 64 per cent to $153.

Travel experts said the biggest rises were in mining areas benefiting from business travellers.

Average prices in the Great Barrier Reef had also been pushed up by the development of new luxury resorts, such as the $500 million luxury retreat qualia on Hamilton Island, and the loss of several resorts after Cyclone Yasi.

''Taking them out of the inventory and other guys reinvesting into the higher end has probably shifted the price more than normal,'' Accommodation Association of Australia CEO Richard Munro said.

Mr Munro said the Great Barrier Reef had become a popular destination for workers from nearby mines looking for R&R.

''Operators are trying to keep ahead of expenses - employees expenses have been up three to four per cent a year,'' he said.

''But just because you put your prices up to try to cover your expenses doesn't mean consumers are going to pay it... with the strong Australian dollar more Australians are heading overseas to places like Thailand, Fiji and Bali.

''Wages in Indonesia are $2 an hour but they're $20 an hour in Australia.''

Mantra Hotels and Resorts marketing director Ken Minnikin said it was difficult to balance the need to keep prices competitive internationally with keeping up with expenses.

''Domestic tourism is tough but there are definitely signs of improvement,'' he said.

Outback Western Australia and North West Tasmania were the only two regions to suffer falls.

Mr Minnikin said people travelling to Western Australia's Outback had to travel via a very busy Perth airport where hotel rooms were expensive and often hard to find.

Queensland Tourism Industry Council chief executive officer Daniel Gschwind said the research shows how resilient the travel and tourism industry is.

''The industry is in an upward trend notwithstanding that we have had some of the toughest couple of years in our history in the middle of that,'' he said.

''The industry needs increases in yields and revenue.''

Biggest price rises over past five years
Destination, percentage increase, average hotel price (per night)
Great Barrier Reef +74% $271
Outback NSW +65% $135
Fitzroy, Queensland +64% $153
Perth, Western Australia +58% $205
East Coast Tasmania +54% $165
Coral Coast Western Australia +52% $159
Whitsundays, Queensland +46% $201
Darling Downs, Queensland +45% $122
Victoria's High Country +45% $149
Northern Queensland +41% $134

Falls/smallest rises
Outback Western Australia -7% $121
North West Tasmania -2% $110
Northern Rivers region, NSW +2% $126
Tropical North Queensland +2% $123
Blue Mountains NSW +4% $165
Kakadu/Arnhem Land, Northern Territory +7% $170
East Melbourne, Victoria +8% $154
Peninsula, Victoria -11% $143
South West Western Australia +12% $142
Victoria Lakes region +13% $110
Source: Australian Bureau of Statistics tourist accommodation figures June quarter 2012

Overseas destinations average prices (per night)
Bali $153
Thailand $107
Fiji $177
Singapore $222
Vietnam $88
Source: Hotels.com Hotel Price Index for first half of 2012

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