Australia’s resource boom may still be a key driver of growth for decades to come, but several multi-billion dollar tourism projects in the pipeline are set to drive the next boom, according to a property expert.
Simon Pressley, managing director of buyers’ agent Propertyology, told Smart Property Investment that Australia’s economy will be increasingly driven by the tourism industry.
“While the resource industry has plenty of steam in it, it will be select locations driven by demand for tourism that would be the next thing for property investors to look out for,” Mr Pressley said. “The tourism industry will definitely replace what we’ve seen in the resources industry.”
The Tourism Forecasting Committee forecasted that the total tourism consumption would reach $114 billion in 2020-21, underpinned by average annual growth of 1.5 per cent.
In Mr Pressley’s recent report titled Tourism to lead next property riches, he stated that the tourism boom will be largely fuelled by Asia’s growing middle class. He also identified major tourism-related projects across Australia.
For example, the $6 million redevelopment of Sydney’s waterfront Barangaroo site could feature a 6-star hotel and casino, while at the Sunshine Coast, Clive Palmer has proposed a $2.5 billion upgrade of his resort at Coolum, including a new airport, beachfront hotel, casino and retail development.
Other multi-billion projects around the country are also expected to set the scene for economic growth.
“Large tourism projects generally create thousands of construction jobs and ongoing employment. With this comes a long-term boost to local economies and creates demand for housing,” Mr Pressley said.
“I’ve nominated towns around Australia where there’s some big tourism related projects, which will create extra demand for accommodation, and that’s a thing to keep an eye out for in terms of future capital growth.”