How to make the most of the interest rate cut? Get a room
Room bookings by leisure travellers surged nearly 15 per cent at one of the country's largest hotel chains after last week's interest rate cut by the Reserve Bank, a sign the cost-of-living crisis may be easing or at least taking a holiday.
The desire for a break after years of mortgage pain and rising living costs was evident in a 14.8 per cent lift in leisure travel bookings, an indicator of domestic demand, across global operator Accor's Australian network of hotels in the week following the Reserve's 25 basis point cut.
'With the reduction of the cash rate in February and then just now in May, we've seen an immediate positive increase in forward bookings for leisure destinations,' Accor's Pacific chief operating officer, Adrian Williams, said.
The group runs more than 400 hotels in Australia and New Zealand under the Sofitel, Pullman, Swissôtel, Mövenpick, Grand Mercure, Peppers, The Sebel and Mantra brands, among others.
Leisure bookings typically make up about two-thirds of travellers staying in its hotel network.
Loading
Last week's rate cut was followed by this week's slightly higher-than-expected inflation figure of 2.4 per cent, although CreditorWatch chief economist Ivan Colhoun said the Reserve was still factoring in two more rate cuts, 'so further easing is still likely – though back-to-back cuts are now less probable due to inflation and global trade uncertainty.'
Williams said the surge in leisure bookings was a sign of the hotel sector's recovery as the group recorded its strongest annual performance in Australia since 2019.
That's despite a 21 per cent increase in new hotel rooms being built and added to Melbourne's accommodation market, where over a five-year period to January this year, 22 new hotels opened with more than 5000 rooms.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
West Australian
31 minutes ago
- West Australian
China's restaurants replace American beef with Australian beef amid trade war: reports
Restaurants in China are reportedly switching out American beef for Australian beef due to Donald Trump's tariffs. The US President triggered a trade war with Beijing by slapping meaty tariffs on Chinese goods. An ensuing tit-for-tat escalation peaked with the US imposing 145 per cent levies on Chinese products and China imposing 125 per cent duties on American products. Both sides have since backed down, with Washington agreeing to 30 per cent imposts on goods from China and Beijing agreeing to 10 per cent on US imports. But the tariffs have still hiked American beef supply costs for restaurants in the Chinese capital, prompting them to look to tariff-free Australian beef. Chinese state media reported on Tuesday that an American-themed restaurant in Beijing had made the switch because of 'cost pressures and declining supply stability of US imports'. The Global Times reported it spoke with a staff member at a 'branch of a restaurant famous for its American-style barbecue in Beijing'. The staff member said the restaurant 'stopped serving imported beef from the US starting from about one month ago due to the impact of tariffs', the Chinese government mouthpiece reported. The Global Times did not name the chain, but US business news channel CNBC has also reported that restaurants in Beijing are changing to Australian beef, including one eatery's 'The Great American' burger. A beef supplier told the network that American 'beef is fattier and tastier' but the 'high price is just too much to bear'. Australian beef is exported to China without any duties under the China-Australia Free Trade Agreement. The Albanese government last year also cleared trade barriers for $20bn in Australian goods headed for Chinese ports, including lobsters.
Perth Now
32 minutes ago
- Perth Now
China's Aussie move in US trade war
Restaurants in China are reportedly switching out American beef for Australian beef due to Donald Trump's tariffs. The US President triggered a trade war with Beijing by slapping meaty tariffs on Chinese goods. An ensuing tit-for-tat escalation peaked with the US imposing 145 per cent levies on Chinese products and China imposing 125 per cent duties on American products. Both sides have since backed down, with Washington agreeing to 30 per cent imposts on goods from China and Beijing agreeing to 10 per cent on US imports. But the tariffs have still hiked American beef supply costs for restaurants in the Chinese capital, prompting them to look to tariff-free Australian beef. Chinese state media reported on Tuesday that an American-themed restaurant in Beijing had made the switch because of 'cost pressures and declining supply stability of US imports'. The Global Times reported it spoke with a staff member at a 'branch of a restaurant famous for its American-style barbecue in Beijing'. The staff member said the restaurant 'stopped serving imported beef from the US starting from about one month ago due to the impact of tariffs', the Chinese government mouthpiece reported. Restaurants in Beijing are reportedly switching from American beef to Australian beef due to the Trump administration's tariffs. NewsWire / Nikki Short Credit: News Corp Australia The Global Times did not name the chain, but US business news channel CNBC has also reported that restaurants in Beijing are changing to Australian beef, including one eatery's 'The Great American' burger. A beef supplier told the network that American 'beef is fattier and tastier' but the 'high price is just too much to bear'. Australian beef is exported to China without any duties under the China-Australia Free Trade Agreement. The Albanese government last year also cleared trade barriers for $20bn in Australian goods headed for Chinese ports, including lobsters.
West Australian
an hour ago
- West Australian
Pacific media face reckoning after US aid cuts
America's retreat from foreign aid is being felt deeply in Pacific media, where pivotal outlets are being shuttered and journalists work unpaid. The result is fewer investigations into dubiously motivated politicians, glimpses into conflicts otherwise unseen and a less diverse media in a region which desperately needs it. "It is a huge disappointment ... a senseless waste," Benar News' Australian head of Pacific news, Stefan Armbruster, told AAP after seeing his outlet go under. Benar News, In-depth Solomons and Inside PNG are three digital outlets which enjoyed US support but have been cruelled by President Donald Trump's about-face on aid. Benar closed its doors in April after an executive order disestablishing Voice of America, which the Unitd States created during World War II to combat Nazi propaganda. An offshoot of Radio Free Asia (RFA) focused on Southeast Asia and the Pacific, Benar kept a close eye on abuses in West Papua, massacres and gender-based violence in Papua New Guinea and more. The Pacific arm quickly became indispensable to many, with a team of reporters and freelancers working in 15 countries on a budget under $A1 million. "Our coverage of decolonisation in the Pacific received huge interest, as did our coverage of the lack women's representation in parliaments, human rights, media freedom, deep sea mining and more," Mr Armbruster said. In-depth Solomons, a Honiara-based digital outlet, is another facing an existential threat despite a proud record of investigative and award-winning reporting. Last week, it was honoured with a peer-nominated award from the Foreign Correspondents' Club of Japan for a year-long probe into former prime minister Manasseh Sogavare's property holdings. "We're just holding on," editor and co-founder Ofani Eremae told AAP. A US-centred think tank continues to pay the wage of one journalist, while others haven't drawn a salary since January. "It has had an impact on our operations. We used to travel out to do stories across the provinces. That has not been done since early this year," Mr Eremae said. A private donor came forward after learning of the cuts with a one-off grant that was used for rent to secure the office, he said. Its funding shortfall - like Port Moresby-based outlet Inside PNG - is linked to USAID, the world's biggest single funder of development assistance, until Mr Trump axed its multi-billion dollar budget. Much of USAID's funding was spent on humanitarian causes - such as vaccines, clean water supplies and food security - but some was also earmarked for media in developing nations, with the aim of bolstering fragile democracies. Inside PNG used its support to build an audience of tens of thousands with incisive reports on PNG politics: not just Port Moresby, but in the regions including wantaway province Bougainville that has a long history of conflict. "The current lack of funding has unfortunately had a dual impact, affecting both our dedicated staff, whom we're currently unable to pay, and our day-to-day operations," Inside PNG managing director Kila Wani, told AAP. "We've had to let off 80 per cent of staff from payroll which is a big hit because we're not a very big team. "Logistically, it's become challenging to carry out our work as we normally would." AAP has confirmed a number of other media entities in the region which have suffered hits, but declined to share their stories. The funding hits are all the more damaging given the challenges faced by the Pacific, as outlined in the Pacific Islands Media Freedom Index . The latest report listed a string of challenges, notably weak legal protections for free speech, political interference on editorial independence, and a lack of funding underpinning high-quality media, in the region. The burning question for these outlets - and their audiences - is do other sources of funding exist to fill the gap? Inside PNG is refocusing energy on attracting new donors, as is In-depth Solomons, which has also turned to crowdfunding. The Australian and New Zealand governments have also provided targeted support for the media sector across the region, including ABC International Development (ABCID), which has enjoyed a budget increase from Anthony Albanese's government. Inside PNG and In-depth Solomons both receive training and content-focused grants from ABCID, which helps, but doesn't fund the underpinning costs for a media business or keep on the lights. Both Mr Eremae, who edited two major newspapers before founding the investigative outlet, and Mr Armbruster, a long-time SBS Correspondent, expressed their dismay at the US pivot away from the Pacific. "It's a huge mistake on the part of the US ... the world's leading democracy. The media is one of the pillars of democracy," Mr Eremae said. "It is, I believe, in the interests of the US and other democratic countries to give funding to media in countries like the Solomon Islands where we cannot survive due to lack of advertising (budgets). As a veteran of Pacific reporting, Mr Armbruster said he had witnessed US disinterest in the region contribute to the wider geopolitical struggle for influence. "The US government was trying to re-establish its presence after vacating the space decades ago. It had promised to re-engage, dedicating funding largely driven by its efforts to counter China, only to now betray those expectations," he said. "The US government has senselessly destroyed a highly valued news service in the Pacific. An own goal."
