NSW Stay vouchers set to expire: Push to extend scheme in Sydney CBD despite high room rates

We’re sorry, this feature is currently unavailable. We’re working to restore it. Please try again later.

Advertisement

This was published 1 year ago

NSW Stay vouchers set to expire: Push to extend scheme in Sydney CBD despite high room rates

By Katherine Scott
The Tourism Accommodation Association is pushing for the NSW government's Stay voucher program to remain in place for Sydney hotels.

The Tourism Accommodation Association is pushing for the NSW government's Stay voucher program to remain in place for Sydney hotels. Credit: Edwina Pickles

With less than a week until New South Wales' hotel voucher scheme wraps, Australian accommodation representatives are pleading for a program extension – but only for the Sydney CBD.

The extension could bring further relief to Sydney's struggling hotel industry, though may see Sydney's upwards-trending average hotel rates remain high for consumers throughout the busy spring and summer events season.

Tourism Accommodation Association (TAA) CEO Michael Johnson said the NSW Stay and Parents vouchers have already helped to stimulate demand and hotel rates across the state.

"If we can continue to stimulate markets then those rates will remain where they are," Johnson said.

Johnson noted the Stay voucher program was originally created to stimulate hotels in the Sydney CBD, who were disproportionately affected by the loss of international visitors.

"The NSW regions had been very busy as there was a lot of pent-up demand for travel, then when both Sydney and all of NSW went into lockdown, it was agreed that the program should extend right across the state," said Johnson. "Now there's an opportunity to put it back to where it was intended, and that is to support the CBD."

In the last seven days, the NSW government has issued almost 49,000 Stay NSW vouchers totalling $2,445,050, with a record 75,314 redeemed across the state, according to Service NSW.

However, that still leaves a massive $75.5 million worth of Stays vouchers yet to be redeemed, and a further $54 million worth of unredeemed Parents vouchers that could also be put towards participating accommodation providers.

The TAA and Accommodation Association have appealed to Tourism Minister Ben Franklin to request the program continue on a more concentrated scale.

Advertisement

"We still have a situation in which the CBD hotels are still about 20 per cent down on their pre-pandemic levels; we don't have international travel back as yet, we're still not fully back with international conferencing, and our corporate markets are starting to return but it's not to the same level," Johnson said.

Sydney hotel rates have been on a steady post-pandemic climb. According to global hotel market data provider STR, July data shows, despite Sydney hotel performance dipping from the previous month, average daily room rates were almost $240, up from $234 in May – and well up from $197 in 2019.

Sydney hotel rates haven't been this consistently high since 2017 and 2018.

August average hotel rates are 15 per cent above 2019 levels for the same month, according to STR regional director Matthew Burke.

"Average rates are continuing to rise with increased input costs (inflationary), a shortage of labour constraining the ability to service more demand and improving product quality all factors," Burke said.

Despite the rate rise, consumers are still showing a willingness to purchase rooms, and the trend isn't limited to Australia.

"These factors are similarly occurring across the world especially in the United States, Middle East and Europe. They're all experiencing similar increases in average rates," said Burke.

The state government has reported an injection of almost $350 million into the state's economy since the inception of the NSW Stay and Parents programs.

Sign up for the Traveller newsletter

The latest travel news, tips and inspiration delivered to your inbox. Sign up now.

Most viewed on Traveller

Loading