City Travel Briefing: Sydney

Tourism from China forges ahead

Strong growth in arrivals from China continue although many Asian destinations see a decline in arrivals to Sydney because of competition from destinations such as Japan.

Domestic tourism recovers after slow growth

The overvalued Australian dollar led domestic tourists to choose international destinations over Sydney, and growth remains lower than international tourism although a recovery is expected.

International business tourism shrinks as percentage of total

International business tourism has decreased as a percentage of total in the past 10 years, and Sydney’s new convention centre should help achieve a turnaround.

Hotel refurbishments across the board

While supply is slow to come to this market, hotel refurbishments are widespread with many hotels reopening with a better value proposition after extensive works.

Slow growth in supply

There is a slow growth in supply and investors continue to fear Sydney as a result of the oversupply that flooded the market ahead of the 2000 Olympics leaving many rooms empty as a consequence.

New airport set for construction

Despite controversy and criticism, the new airport plans were approved in 2014 and construction will begin in 2016 on a first runway.

Qantas recovers slowly

Qantas struggled with heavy losses during a few years and is starting to experience a turnaround which is leading to international expansions.

Cricket World Cup adds to high-profile international events

Sydney hosted five of the matches that took place during the ICC Cricket World Cup in 2015, with full capacity achieved at all matches; the final, however, was played in Melbourne.