Hotelier blames FIFO for tourism woes

A DARWIN hotel operator has said the excessive use of rooms by FIFO workers and contractors has “killed the tourism business”.

A DARWIN hotel operator has said the excessive use of rooms by FIFO workers and contractors has “killed the tourism business”.

Elan Soho Suites’ general manager Steve Frichot said 25 per cent of rooms were allocated for “leisure” guests.

“Some hotels are just doing 100 per cent fly in, fly out and not caring about the tourism industry,’’ he said.

Mr Frichot said there was plenty of availability during the wet season, but when the mining and resource sectors “ramped up” work in the dry, it became problematic for visitors to the Top End.

“That’s what killed the tourism business because they can’t pay the prices or they don’t want to pay the prices demand has driven them to,’’ he said.

Other Darwin CBD hotel operators refused to disclose how many rooms were regularly occupied by workers and if it drove up costs.

Wotif.com product director Donna Rodios said a strong mining presence had resulted in “reduced midweek availability and increased rates over the high season” in 2014.

Tourism NT’s December accommodation report found hotel occupancy peaked at an average of 89 per cent between July and September 2014.

The report confirmed it was in part the result of a “block booking” of three hotels for 35 days by workers from oil and gas company ConocoPhillips.

“The cost of accommodation for consumers did not ease in 2014, with only some late softening of the average daily rate when Elan Soho Apartments opened for business,’’ it read.

The report also found peak demand for hotel rooms was on a Tuesday, when “FIFO workers change shifts”, the most conferences were held and the Ghan arrived in Darwin.

NT Chamber of Commerce chief executive Greg Bicknell said the high number of Inpex workers had put pressure on room availability.

Earlier this week an Inpex spokesman said “8000 personnel will be required at the Blaydin Point site on any given day during peak construction, which will start during 2015”.

But Australian Hotels Association NT chief executive Des Crowe said the occupancy of FIFOs in hotels had “been exaggerated”.

“Many of the FIFOs reside in serviced apartments, apartments and worker villages,’’ he said. “The opening of new hotels has also increased the supply of rooms.”