The annual NSW Accommodation Australia Chairman’s reception for members across the industry was well attended at the Sofitel Sydney Darling Harbor on Wednesday.
The event was hosted by AA NSW General Manager Stacey McBride, and Minister for Employment and Tourism Steve Kamper also provided an overview of the current status and prospects of the tourism and accommodation industry.
“This is our chance to raise a glass to the new year before the demands of the year overwhelm us, although I have to say, this year, it feels like that’s already happened and it looks like it’s going to be another busy year,” McBride said.
“The Australia Day long weekend traditionally marks the end of the holiday season and despite hot and extreme weather in parts of the country, occupancy rates have remained strong. In fact, this has been the strongest December to January period for accommodation providers in five years.”
In December, the average occupancy rate in New South Wales reached 77%, a year-on-year increase of 2.8%, and the ADR increased by 9%. Subsequently Sydney’s New Year’s Eve occupancy and house prices hit record highs.
January results showed hotel occupancy improved in most capital cities, including a 5% increase in Sydney. Meanwhile, the total number of tourist arrivals reached 8.6 million in the year to November 2025, an increase of 7% over the previous year, with holiday arrivals increasing by 10%.
McBride said: “When holiday numbers hit 3.9 million, that’s a 10 per cent increase. Historically, holiday numbers hit an all-time peak of 4.48 million in the year to December 2019, so if this growth continues we could see holiday numbers exceed 4.8 million in the year to June 2026 for the first time since the pandemic and the numbers are moving in the right direction.”
McBride attributed the momentum to support from policy makers, citing the federal government’s recently released Tourism Action Plan, The plan focuses on increasing tourist spending to $230 billion by 2030.
Mark Ronfeldt, vice-president of the Australian Accommodation Association of New South Wales and CEO of Daiwa Living Nesuto Holdings, reviewed new hotel openings across the state in 2025, including the launch of new brands to the market, as well as major events such as the Lions Tour, providing momentum for the industry.
“The Australian Accommodation Association currently has more than 300 members across New South Wales, ranging from small regional motels and hospitality properties to large local and international hotels. New South Wales accommodation hotels generate more than $2.7 billion in revenue each year and contribute more than $2.2 billion in value to the state economy,” Ronfeldt said.
Minister Kemper reiterated the importance of the industry to the state’s visitor economy, with a full calendar of events helping to grow it.
The popular Vivid music festival is being redesigned “on a smaller scale” this year, the minister said. Vivid 2025 increased visitor numbers to 2.53 million and achieved its highest May occupancy rate since 2019.
“NSW is already a visitor economy powerhouse, but we can take it to the next level with our 2035 Tourism Economy Strategy, which targets visitor spending of $91 billion by 2035,” Kemper said.
“To achieve this, we need to add 8.5 million airline seats, 150,000 jobs and, importantly, 40,000 additional lodging rooms across the state.”
“It’s ambitious, but it’s definitely achievable and if we follow last year’s growth and we clean up the numbers, we’ll hit that goal easily,” Kemper said.
“To help deliver the rooms we need, our government has set up the Investment Delivery Agency to fast-track major private investment across the state, including major hotel developments.”
Kemper said hotels were the first industry to receive a “special exemption from the IPA (Investment Delivery Authority) because we understand how important additional rooms are to our economic growth”.
Kemper said the upcoming 24-hour Western Sydney International Airport would help grow the industry as it would attract new interstate and international travelers to New South Wales, saying it would be a “real game changer” for the state, and Western Sydney in particular.
