Mining capitals miss out as corporate travel rises BUSINESS travel grew an average 6.4 per cent in the year to March, but the capitals of resource-rich Queensland and Western Australia experienced a staggering downturn in corporate travel of more than 20 per cent as the mining sector deferred billions of dollars worth of projects. Despite the softening, the Deloitte Tourism and Hotel Market Outlook found 65 accommodation projects in development nationwide -- up significantly on the 45 projects recorded at the start of last year. Deloitte Access Economics director Lachlan Smirl said demand for accommodation continued to grow at close to twice the pace of supply, but most of the mooted projects were three or four-star rated properties as well as serviced apartments, given the high costs involved in developing five-star hotels. "The hotel accommodation investment pipeline remains considerably stronger than 18 months ago," he said. Mr Smirl believes the softer outlook for corporate travel, particularly for Brisbane and Perth, as foreshadowed in The Australian recently, will be counter-balanced by an increase in domestic tourism, particularly to the Gold Coast, given the weakening dollar. "Occupancy rates improved on the Gold Coast and in Melbourne as a result of increased domestic holiday visitor nights, and grew in tropical north Queensland on the back of increased international visitor arrivals," he said. There was a big improvement in Darwin occupancy rates, which reached 78.5 per cent for the year to May, with revenue per available room expected to grow 4.3 per cent over the three years to December 2015. In bad news for corporate travellers, the Deloitte's outlook released today says demand for new accommodation remains forecast to outstrip supply, placing upward pressure on occupancies and room rates. The report also foreshadows national room rates growing 3.5 per cent per annum in the three years to December 2015, to $165, while occupancies will jump 1.9 per cent to 67.9 per cent. Deloitte believes revenue per available room -- the standard industry measure -- will grow by 4.6 per cent a year until 2015. "Areas with high exposure to fast-growing international visitor markets remained well positioned for growth," Mr Smirl said, noting the significant divergence in performance in the nation's hotel accommodation markets. In Sydney, Deloitte says occupancy rates improved to 84.8 per cent over the year to May, but remain softer than two years ago. However, room rates continued to grow steadily, improving 3.5 per cent to $196 over the year to May. The decline in domestic corporate travel meant Perth's occupancy rates for the year to March fell to 83.8 per cent, the lowest level since 2011. However, in the three years to December 2015 room rates are forecast to grow at 6.2 per cent a year, still the nation's fastest, but considerably slower than the pace of recent years, rising from $200 at present to $239. Melbourne's occupancy rates grew to 81.9 per cent over the year to May and are forecast to climb to 84.1 per cent by the end of 2015. Room rates averaged $181 over the year to May and are forecast to grow an average 4 per cent a year over the period to December 2015. Brisbane's hotel occupancy rate eased 2 per cent to 79 per cent in the year to May compared with the previous period. Occupancy rates are expected to remain relatively stable. Gold Coast occupancy rates for the year to March reached 71 per cent and are forecast to continue to grow through this year before stabilising at about 72 per cent by the end of 2015. Despite this, revenue per available room is forecast to grow at an average rate of 4.5 per cent per year over the same period, to $112. Adelaide's occupancy rates are expected to edge up slightly to 75.3 per cent in the year to December 2015, while Canberra's occupancy rates fell to 69.2 per cent for the year to May. They are forecast to remain steady for the year to December 2015.