The mere act of buying commercial real estate on the Gold Coast is something that can bring you great benefits down the line, whether it is yields from leasing this out or the capital gains that grow over time. If you're a business owner occupying your own Gold Coast commercial hub, then income from your business is just as important. After all, how else can you stay afloat?
Expenditure from visitors to the Gold Coast plays a crucial role in this. The local council notes that there is more than $4billion in total spending from people coming to the Gold Coast every year, and now there are new figures showing that this cashflow is on the rise – particularly from international sources.
The Queensland government has reported on Tourism Research Australia (TRA) figures that indicate strong spending right across the state. In the 12 months to March this year, total expenditure from overseas visitors alone reached $4.4billion. That's an 11.2 per cent increase, or $421million, on the previous year.
"The latest International Visitor Survey revealed 2.2million international visitors stayed 48.5million nights in Queensland in the year to March, increases of seven and five per cent respectively," said Kate Jones, state minister for tourism and major events.
"International travel increased across all sectors including holiday, those visiting friends and family, and business related travel."
And where are these people coming from? China is the biggest market, accounting for $767million of the overseas spending, followed by New Zealand ($535million) and the United Kingdom ($458million). After this came Japan and the United States to round out the top five.
With a further $400million allocated in the state budget for tourism in the coming year, it looks like this industry will only continue to grow. Those who are interested in retail leasing on the Gold Coast should be excited about this, as it offers a number of opportunities for maximise profits and expand business to meet the market.
While these statewide trends are incredibly promising, what does it mean for local industry? The Queensland Tourism Industry Council (QTIC) has also conducted research into how much visitors spend here, and the results are similarly pleasing.
While China was the responsible for the most spending in the country, it fell slightly behind New Zealand in terms of visitor numbers – this shows that per person, Chinese tourists are outspending Kiwis. And which area is the focus of this Chinese market? You guessed it, the Gold Coast. Alongside Brisbane, the Tropical North and the Whitsundays, the Gold Coast is one of the main recipients of visitors from China, according to the QTIC.
The average spend from a visitor worked out to $1,231 across a mean 9.7 day stay, showing that there is a lot of business to be made by investing in commercial real estate on the Gold Coast. Expenditure rose by 10.1 per cent in the year to March, while the number of visitors went up by 6.2 per cent.
Clearly, people are visiting here more often and spending more when they do so. These are excellent conditions for business owners and commercial investors alike to get involved in the market.
Whether it's industrial real estate on the Gold Coast or a commercial property lease on a Surfers Paradise storefront, the team at Ray White is here to help. We have offices up and down the coast, and the experience and expertise to find you just what you need. It seems likely that tourist numbers will only keep growing – make sure your business grows with them.