State must “build its way out” of hotel shortage, say peak building bodies

Tasmania’s surge in tourist numbers needs to be met with infrastructure growth, say the state’s peak building bodies.

TASMANIA’S peak building bodies are calling for the state to “build its way out of” a shortage of hotel accommodation.

Master Builders Association executive director Matthew Pollock said Tasmania’s visitor economy had been a “jobs machine” in recent years, but the tourism growth wasn’t being met with the required infrastructure growth.

“We can’t back away from the fact that more and more people want to live in and visit Tasmania. Refusing to plan for that isn’t an option,” he said.

“Part of the solution to the housing shortage must be to support the next phase of hotel construction or the rental market in Hobart will continue to be strained. This is turning into a significant challenge, but the answer is simple – we need to build our way out of it.”

Hobart Lord Mayor Anna Reynolds said discussions were required to find sensible policy approaches to how Hobart can best accommodate its growing tourism numbers.

Council data shows there are nearly 800 hotel rooms to come on line from five hotels due for completion in the next 12 months.

Cr Reynolds said HCC had refused two hotel developments in the past five years and said the community expected that developments would be managed sensibly and within the confines of the council’s rule book.

“Building approvals aren’t the problem, building starts and completions are,” Cr Reynolds said.

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Property Council of Australia Tasmanian division executive director Brian Wightman said all levels of government needed to “accept the challenge” to “capitalise on opportunities in front of us”.

“We’re coming to a point where the current batch of hotel developments, especially in Hobart, will be finished soon. What then? What’s next? Just because building stops, it won’t mean visitation will.”

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Cr Reynolds acknowledged that short-stay accommodation providers extended the scope of options for tourists and added to Tasmania’s visitor experience, but said regulations for short-stay providers should be looked at to alleviate housing stress.

Acting Premier Jeremy Rockliff said the State Government was “actively encouraging the potential development of appropriate visitor accommodation in a number of the state’s tourism hubs”.

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