How Australian tourism can boost your investment

After two years of a slow international travel market, tourism in Australia had taken a massive hit. Now that vaccinations are rolling out, global travel is being more widely encouraged and things are picking up pace once again. By the end of 2022, experts are predicting that the tourism industry will have had a strong impact on the property market. From rentals to hotel capacity, things are hotter than ever. Let's take a closer look at how the return of tourism can boost your commercial property investment in Australia.

The impact of open borders

In February 2022, the country of Australia decided to re-open its borders after a two-year lockdown to protect residents from the impacts of COVID-19. According to an interview published by the BBC, the Australian tourism industry is made up of 660,000 employees, and the newly open border policy is helping bring their livelihood back. In addition, hotels and short term rental properties are also seeing an uptick in interest.

After the borders opened to double-vaccinated international travellers, there was a sharp increase in foreign visitors. To be more specific, 2022 saw about 34,670 more arrivals than December 2020. It was clear that tourism was well on its way to returning back to full force.

Short-term accommodations were severely impacted by the virus, and investors were not able to make their usual returns on initial investments. Now, international travellers are more eager than ever to go on holiday and visit a new place after being stuck in their home countries for years.

Demand on the rise

The real estate market saw an increase in demand as a result of several factors, one of them being the boost to the tourism industry. This is an exciting prospect for those who have invested in short-term rentals and other accommodation properties. According to ABS, about 34% of short-term arrivals to Australia are likely to stay for less than a month.

Tourism destinations like Queensland are seeing an increase in interest in tourism, benefiting investors who had previously struggled to see the return on their purchase for the past two years. According to CoreLogic, here are some of the countries that have been travelling into the country:

• New Zealand
• Japan
• Singapore
• Britain

With demand on the rise, the supply of short-term rentals is struggling to catch up with the market. Some investors sold their previous properties or no longer have the staff to accommodate a short-term rental.

If you're interested in learning more about how to capitalise on the increasing demand for short-term accommodations and benefit from the rise in tourism, reach out to Ray White Surfers Paradise today.