Mr Smits was upbeat in his comments about hotel performance across Australian markets during 2000.  �The year was a bit of an anomaly� he commented, �with obvious Olympic effects reverberating across Australia�s markets and Sydney the clear beneficiary in terms of yield�.   

Nine months later, post analysis and post Olympics, the year in review makes for an interesting story. Consumer sentiment was strongly influenced by two one-off events � GST and the Games, with obvious pull forward effects balancing a softer finish to the year.  

Australia�s buoyant economy for the most part of 2000 had a positive impact on hotel performance. Occupancy grew slightly to 73 percent and room rates grew by seven percent to AUD$153, influenced by a strong room rate performance for Sydney.  
 

Rooms yield grew for all cities surveyed during 2000.  Performance was spurred on by renewed growth in the number of international visitors to Australia, increased marketing leverage from the Olympic Games and underpinned by domestic corporate demand.

Queensland markets demonstrated a return to growth during 2000, boosted by a burgeoning inbound sector, particularly from Asian source markets.  Limited supply growth and a competitive exchange rate aided occupancy growth in Cairns. The Brisbane market turned the corner during 2000, recording a slight increase in average room rates, following a difficult 1999.  �The outlook for Brisbane is more positive in 2001, with a series of special events set to boost occupancy city-wide.  Brisbane has shown the best results year to date 2001, recording a 7.3 percent rise in rooms yield in the first quarter�, said Smits.

�The Gold Coast outshone other Queensland markets during 2000 with occupancy and rate increases translating to a 4.4 percent jump in rooms yield.  The Gold Coast also continues to track well in 2001 with yield up 4.9 percent in the first quarter�, Smits added.

Unsurprisingly, Sydney emerged as Australia�s star performing market in 2000, with average room rates up 14.8 percent, yield up 13.1 percent and absolute demand up by over five percent.  Smits commented that, �Sydney is now beginning to feel the influence of supply growth in the absence of equaled demand growth, and the going is tough for non-CBD properties in particular�. 

Perth�s increase in occupancy during 2000 suggests an opportunity for rate gains during 2001, although first quarter results show a continued marginal decline in room rates.  

Melbourne and Adelaide were the country�s steady performers in 2000, with limited supply increases and steady demand growth resulting in occupancy and rate gains.  �March on March, Melbourne is tracking on par for 2001, although Adelaide rates have demonstrated some decline�, Smits said.  

Canberra�s reasonably lack-lustre year 2000, which saw occupancy slip slightly, can be attributed to the effects of Olympic displacement, a one-off phenomena that certainly impacted all Australian markets to some degree during 2000. 

In closing Smits commented, �The Andersen Hotel Industry Benchmark Survey has been a critical tool in understanding market performance during 2000, and continues to provide us with an insight into key trends across and between markets.  Its success is owed to continued industry support.  We look forward to continuing our relationship with contributors and the industry at forums such as ATE�.

Andersen is a global leader in professional services. It provides integrated solutions that draw on diverse and deep competencies in consulting, assurance, tax, corporate finance, and in some countries, legal services. 

Launched in 1996 as the definitive source of hotel performance data outside North America, the Andersen Hotel Industry Benchmark Survey comprises information gathered from more than 4,500 hotels in 200 markets across 140 countries.