11/02/12, 00:43:36 EST

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Hotel room shortage hits NSW tourism

theage.com.au

Sydney will lose tourist revenue if the NSW government fails to address a looming shortage of hotel space in the city, a tourism industry group says.

Tourism and Transport Forum Australia (TTF) estimates the government's prediction of growth in visitor nights to Sydney over the next nine years is less than half of industry estimates.

Between now and 2016, the government is predicting a 6.7 per cent growth in visitor nights, requiring 1,300 extra hotel rooms in Sydney, TTF national manager Peter Staveley said.

But the national Tourism Forecasting Committee estimates growth in the same period of 16 per cent in visitor nights, requiring some 3,200 extra hotel rooms.

Mr Staveley also said hotel planning takes a back seat to other commercial interests.

"In the current property market, hotels are forced to compete for land sites in Sydney with office, retail and residential developments," he said in a statement.

"It is far easier to raise finance for an office or residential development than for a hotel because the returns on investment are immediate."

Mr Staveley said the state government should take measures to specify appropriate sites for hotel construction and should stipulate that large commercial developments include a hotel.

"If Sydney cannot service the needs of business travellers, then ultimately these visitors will take their business, and their money, elsewhere," he said.

 Printable Version  | published Aug 29, 2007