REEFCHANGE
There is a variation emerging in the traditional sea-change phenomenon to explain the major investment in coastal development. It is being called "reef change", and it probably explains why around $1 billion is expected to be invested in just one small north Queensland town by the end of the decade. Cheaper air fares and increased airline capacity have mae Far North Queensland (FNQ) and especially Port Douglas a favoured long-weekend getaway for people in Melbourne and Sydney, and this increase in visitors has caused a property boom in recent years.
Fiona Bergin, REIQ Research Manager recently reinforced the important influence seachange is now having on the real estate market.
"The ‘seachange’ phenomenon has surpassed marketing lingo and is now considered one of the most important demographic and social drivers being experienced in Australia today, with Queensland being the primary beneficiary.
"Since 2001, areas around Brisbane, the Sunshine and Gold Coasts in particular have been targeted by baby boomers retiring early to seaside locations from places as far afield as Melbourne, Sydney and overseas. “However, as prices in these prime holiday areas have risen, buyers have been looking elsewhere in search of more affordable lifestyle property." “Buyer interest and price growth has rippled out from traditional beach locations such as the Gold Coast and the rest of the state’s coastline from Hervey Bay through to Townsville and Port Douglas is now booming."
However sales aren’t just being driven by baby boomers. Generation Y are now seeking more affordable and improved lifestyles by moving to regional areas and this growing trend is exhibited by more than 50,000 people moving to Queensland each year.
TOURISM MARKET
The facts and figures clearly show that Tropical North Queensland (FNQ) is experiencing significant growth and vitality. Port Douglas is a main attraction for tourists and visitors to FNQ. Tropical North Queensland is increasingly popular with tourists experiencing high growth in domestic tourist numbers (1.5 million tourists visiting the region in the year ending March 2005). Port Douglas recorded the highest increase in room occupancies. This demand for accommodation has not slowed down.
FNQ had an increase of 25% in visitors from December 2005 to December 2006. By comparison, the Sunshine (-11%) and Gold (+1.9%) Coasts experienced stagnant or reducing number of visitors over the same period.
Of QLD’s top six regions, only FNQ recorded a good increase in both visitors and visitor nights over the last year.FNQ and the Gold Coast attracted the highest number of international visitors who were holidaying inAustralia. FNQ experienced a 9% increase in domestic visitor nights over the last year, with the business market being a key driver. Domestic visitor nights from the business market increased by 31% in FNQ over the last year.
Over 1.5 million tourists visiting the region in the year ending March 2007.
Growth in room nights available has remained almost stagnant (only 1.2% increase in room stock).
FNQ is enjoying 66% occupancy rate – an increase from 2006.
FNQ room occupancy rate highest in country (2nd only to ACT)
International business travel to the Tropical North Queensland region was also strong over the last year with business visitors increasing by 35% compared with the previous year.
Source: Tourism QLD International snapshot 2006 & 2007)
Future Trends in FNQ Tourism
In October 2006, Ian Mitchell (CEO, Tourism Queensland) made an address detailing his plan for the coming year which is designed to increase tourism numbers into the Tropical North Queensland region. His plans for 2007/08 include:
Establish the 'Refreshed' brand positioning for the region both domestically and internationally.
Develop and implement strategic domestic marketing activity to raise awareness, preference and conversion in primary and secondary target markets.
FNQ generated Publicity value 05/06 $45.5m. This will result in greater awareness and increase visitor preference.
International visitor arrivals to Australia are forecasted to grow aan average annual rate of 4.9% from 2007 to 2016. International visitor nights are also forecasted to grow by 4.3%annually.
From late 2008 an increase in aviation capacity is expected to relieve peak period seat shortages and place downward pressure on airfares, stimulating growth in travel to Australia. In particular the new Airbus A380 and Boeing 787 aircraft will facilitate substantial growth in air capacity. This expansion along with an assumed modest weakening of the Australian dollar in the medium term is expected to support strong growth in arrivals to Australia.
Over the last year Tropical North Queensland has had great success within North American markets (number of visitors from USA up 7%, Canada up 3%). The North American market is relatively high yield as these visitors tend to mostly stay in luxury (38% of visitors from USA), or standard commercial accommodation (33% of visitors from USA). Another positive from the North American market is the increased average length of stay.
There was also an increase in the number of people who visited the beach, the most popular activity within the Tropical North Queensland region; with 37% of all visitors to QLD spending time on the sand or in the water. FNQ and Port Douglas’ access to beaches and the Great Barrier Reef will continue to be affected by this significant trend.
The economic value of international tourism is forecast to increase by 3% to $23 billion in 2007 and by a further 4% to $24billion in 2008.
Sources: Tourism QLD International forecast November 2007
Tropical North Queensland Regional Snapshot - Year Ended June 2007
