Future Victoria: Country tourism hot spots need more rooms to ease accommodation squeeze

If you are planning a trip to country Victoria, you might want to book early. A lack of holiday rooms is already an issue in many towns — and it’s only going to get worse unless drastic action is taken, experts say.

Thousands of extra rooms are needed in regional Victoria to cater for a booming tourism market.

Figures reveal just 14 per cent of the state’s accommodation developments are being built in regional areas, compared with 24 per cent nationally.

And Deloitte analysis released last year found that, if occupancy rates remained improved, the Great Ocean Road alone would need almost 3400 extra rooms by mid-2026.

Tourism Minister Martin Pakula said the state government “openly acknowledges that there is a lack of accommodation in some parts of regional Victoria”.

“Regional Victoria has the best of everything,” he said.

“From food and wine offerings to unique nature-based experiences, it is unrivalled on a global scale — but, from a tourism perspective, we think it can be even better.”

It has been predicted towns along the Great Ocean Road will need almost 3400 extra rooms in the next seven years to cater for booming tourism. Picture: Jake Nowakowski

Victoria’s regional tourism review has zeroed in on the potential of new “high-end and boutique” accommodation to boost regional tourism.

“As we increase accommodation options for different types of visitors in regional Victoria, we increase the benefits of tourism to regional communities and economies,” the review’s discussion paper said.

“Other regional areas, such as in Tasmania and South Australia, have increased visitation

and spend by developing boutique nature-based accommodation that showcases the region’s environment.”

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Sofitel Melbourne general manager Clive Scott said while regional Victoria lacked luxury accommodation, visitors did not want “a glorified five-star hotel stuck in the middle of the bush”.

“When people head to regional areas, they want that quirky product — they don’t want that big luxury hotel,” Mr Scott said.

“We have to be very careful … you are not going to build a Sofitel in the middle of Horsham.

“But if you built beautiful luxury cottages or something built specific to the area that could work well.”