The annual Tourism Investment Monitor produced by Tourism Research Australia – which also tracks Australia’s domestic and international visitation figures – found infrastructure investment in projects worth more than $20 million in the visitor economy has reached $74.5 billion, rising by 18 per cent compared to 2023-2024 financial year.
Breaking down the investments between the three areas into which they’re categorised – aviation, accommodation and arts, recreation and business services – not all categories are seeing a rise in investment.
Aviation investment was up by $5.9 billion or 26 per cent with two new projects in the last financial year while the “everything else” category of arts, recreation and business services, which includes event venues, was up $5.4 billion – 19 per cent – increasing by 24 projects.
However, investment in accommodation was down slightly, dropping by $200 million or one per cent, with nine fewer projects in the pipeline and 2,400 fewer rooms.
Mixed used developments, which are not included elsewhere, were also down, by two per cent, or $1.6 billion, with seven fewer projects, although the number of rooms current investments are expected to deliver were up by 2,800.
In terms of where the investments are falling, more than two thirds of infrastructure investment is slated or in development in Australia’s three most populous states.
Victoria has the biggest share of the pie, with $21.6 billion worth of investment proposed, in planning or under construction, however nearly a third of that is a proposed airport development in southeast Melbourne which is the most uncertain phase of the infrastructure pipeline.
New South Wales has the second largest investment pipeline at $18 billion, with the lion’s share – $9.7 billion – sitting in the arts, recreation and business services category and the majority under construction, with just a fraction in the proposal stage. Projects include the Entertainment Quarter redevelopment at Moore Park which is valued at $1.5 billion and currently in a tender process looking for a private sector developer and operator to take on the project.
Queensland has the third largest investment pipeline at $14.9 billion, with the vast majority – 70 per cent – sitting in arts, recreation and business services category, bolstered by the state’s Olympic venues plan which is all still sitting in the proposal phase.
