More Australian families are opting to stay home side for their summer holidays with the falling Australian dollar being a major deterrent in overseas travel, new research has found.
The study released this month by leading real estate network LJ Hooker shows the softening Australian Dollar has had a positive effect on holiday rental markets around the country; with domestic holiday makers driving demand.
According to LJ Hooker National Research Manager, Mathew Tiller the currency correction has had two main effects on tourist numbers.
“Firstly, it’s cheaper for overseas tourist’s to travel here, providing a boost to hotel, motel and resort occupancy rates,” he said.
“Secondly, it makes it more expensive for Australian travellers to venture overseas which in turn makes a holiday destination closer to home more attractive.”
The growing strength of the domestic holiday travel market is evident in the results of the latest survey of LJ Hooker offices that manage holiday rental accommodation. The survey found that a massive 62 per cent of respondents have seen higher demand for holiday rental accommodation this year, compared to last year. In addition, as of the end of October 2015, 17 per cent of respondents had already rented 100 per cent of their holiday rental properties for the upcoming Christmas/school holiday period, while a further 53 per cent have leased between 75-99 per cent.
However holiday letting in Australia doesn’t automatically mean Australian families are tightening-their-belts, with this beautiful Byron Bay Summerhouse renting for $13,000 per week over the Christmas/new year period by LJ Hooker Bryon Bay.
“This property is a real standout with first class views of the Bryon Bay hinterland and coast,” Liam Annesley, director at LJ Hooker Bryon Bay said.
“We’ve seen massive interest from ex-pats coming over from Hong Kong and surrounding Asian areas taking advantage of the fallen Australian dollar. They can bring their families here for relatively cheap.”
The survey also looked to uncover what the key attractions are for holiday makers visiting certain destinations. As expected, outdoor experiences overwhelming win. This saw 55 per cent of respondents say the beach and/or lake was the key driver of holiday makers coming to their region while a further 20 per cent said it was the bush walks/wildlife explorations.
Looking at the specific rental accommodation that holiday makers choose, surprisingly, proximity to public transport ranked as the most important factor when holiday makers choose a property. This was followed by pet friendly, a pool and nightlife. Unexpectedly, the affordability of a property ranked lowest on the list of considerations.
According to Mr Tiller the outlook is very positive for tourism and holiday market around the country over the next 12 to 18 months.
“Economists are forecasting that the Australian Dollar could fall to around US$0.65 over this period. This is expected to see vacancy rates for holiday rental properties remain low as domestic holiday makers look to take more vacations closer to home,” he said.
“This also provides a new range of opportunities for property investors. The holiday markets, generally, are more affordable and are higher yielding than their capital city counterparts.”
