Those with rentals in Adelaide are often only focused on yield and vacancy rates, but for the select few that rely on seasonal holiday accommodation for their investment income, recent tourism figures will come as a pleasant surprise.
Figures released by Austrade and Tourism Research Australia (TRA) for the year ending September 2014 reveal record numbers for South Australian tourism. South Australia was an average performer when considering the country as a whole, coming in with the fifth highest amount of visitors to the state, as well as the fifth highest trip spend.
However significant growth over the 12 months to September highlight a changing trend, with a seven per cent growth in visitor numbers as well as a seven percent increase in tourism dollars earned by the state. This equals the growth experienced by the country’s biggest tourism market, Sydney, which also managed a seven per cent rise in both categories.
According to the release by TRA, these are the highest number of visitors to the state ever. The 390,000 travellers that stopped in spent around $735million – a significant investment in the South Australian tourism market and the economy of the state as a whole.
Those with investment property in Adelaide could consider the possibility of seasonally renting to overseas travellers or interstate business people during the off season. Make sure to talk to a local real estate agent if you would like to explore this option, as they will be able to provide rental figures to contrast to the high but less frequent amounts that can be collected from tourists. This will make a good jumping off point when making this decision.
Interstate travellers contributed a significant amount to South Australia’s accommodation, tourism and business markets, with 5.279 million visitors stopping in the state and spending a combined total of almost 21 million nights in South Australia.
Domestic travellers accounted for 13 times the amount of visitors to the state when compared to international visitors, and spent almost double the amount of time in South Australia. This indicates short business trips, as the average overseas visitor stays for a longer period of time. According to the TRA, domestic visitors spent around $2750million, compared to $735million from foreign travellers.