‘It puts the brakes on for summer’: Tourism boss says start planning now for more hotels

Five new hotels are set to open in Hobart’s CBD over the next 18 months, but the rooms can’t come soon enough for tourism operators.

An artist’s impression of the proposed Hyatt Centric Hotel in the Elizabeth Mall. Picture: JAWS ARCHITECT

HOBART CBD hotels are already close to being fully booked over summer, with Tasmania’s tourism boss saying the accommodation squeeze is putting the handbrake on growth.

Five new hotels are set to open in Hobart in the next 18 months adding an extra 900 rooms but won’t come soon enough for the busy summer period.

Online booking sites have just a handful of hotels available between December 20 and January 6, many of them backpackers accommodation.

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Tourism Industry Council Tasmania CEO Luke Martin said those visiting for the Taste of Tasmania and the Sydney-Hobart yacht race had booked out hotels all over town.

“It’s affecting growth. It puts the brakes on for summer,” Mr Martin said.

“Tourists want to come to Hobart, they want to go to the Taste but with the current bottleneck and no new rooms it won’t be possible.”

An artist's impression of the new Marriott Hotel in Parliament Square. Picture: SUPPLIED.

Tasmanian Hospitality Association general manager Steve Old said hotels in central Hobart were “chockers” and getting close to capacity, especially over Christmas and the New Year.

“They might be getting ready to put up the full signs in the city but if you look 15 or 20 minutes out of town there are still some great options,” he said.

Daniel Hanna from the Federal Group said their three Hobart hotels were already heavily booked.

“Henry Jones Art Hotel is booked out already and we are well ahead of where we were at the same time last year for both MACq 01 and Wrest Point,” he said.

“This is great for our hotels but I do encourage anyone that is thinking of staying in Hobart over the Christmas/New Year period to consider booking now as we are on track to achieve full occupancy.”

An artists impression of Fragrance Group's proposed hotel for 179 Macquarie St. Picture: Scanlan Architects

An Airbnb spokesperson said more than 5000 guests booked with Airbnb hosts in Hobart during the Taste of Tasmania last year and that is expected to grow this year.

“What this shows is that Airbnb and the traditional accommodation sector are working together to ensure we can continue to grow our visitor economy,” the spokesperson said.

The five hotels around the city will open progressively from April creating 400 jobs.

But Mr Martin said tourism operators could not afford to become complacent.

“Realistically we know that these projects take four to five years from the development application being lodged to construction being complete,” he said.

“Knowing this we need the next generation of projects coming through now as the data shows that’s the only way we can deal with the projected continued growth.”

Mr Martin said he believed a few factors were holding back growth including uncertainty over building heights and the perception the Hobart City Council was anti-development.

An artist’s impression of the new Vibe Hotel in Hobart. Picture: SUPPLIED

Co-developer of the Vibe Hotel in Argyle St Annalisa Doedens said they were on track to open by the end of April.

“We’re different to other developers in that we’re individuals rather than multinationals and we’re Tasmanian with a focus on using local products and services,” she said.

NEW HOTELS OPENING IN HOBART:

Hyatt Centric Hotel, Elizabeth St bus mall, 221 rooms, $40m

Crown Plaza, Icon Complex above Myer, 235 rooms, $45m

Marriott Tasman Hotel, Parliament Square, 152 rooms, $50m

Fragrance Group Macquarie St hotel, 202 rooms, $30m

Vibe Hotel on Argyle St, 142 rooms, $46m