New research released by Colliers International shows how Australia has become a very popular destination for Chinese investment into tourism. Starting at around $90 million in transactions in 2012 (which was just 6% of the total), Chinese investment in Australia hotels has soared to just under $1.1 billion in 2016 (37% of the total). Chinese investors have now become the single largest source of Australian hotel investment. Interestingly, domestic investors are right behind them in the second spot, contributing 29% of total investment.
Figure 1. Chinese Investment in Australian Hotel Real Estate, 2012-2016
The reports highlight that while the Chinese have traditionally preferred to buy existing assets, there has been more and more Chinese pursuing greenfield hotel developments. And at the same time, the reports highlight that the interest is not just focused on capital cities, but regional Australia as well. Particularly, traditional Australian tourism hot spots (i.e. Gold Coast, Sunshine Coast, Cairns, etc.) are experiencing a considerable increase in Chinese hotel investment.
While important to recognise the recent trends in Chinese investment (not only into hotels, but other property as well), it should remain important to consider local, domestic investors as well.
Lucid Economics has worked with numerous Chinese (and domestic) investors on tourism projects. If you would like to discuss any tourism investment opportunities in your community or how to attract investment, please feel free to contact us at email@example.com or 1-800-940-990.