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Speaker 1: The hotel. I should say occupancy rates in Darwin are

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Speaker 1: considerably down on pre pandemic levels, with the lack of

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Speaker 1: domestic flights part of the problem. We've spoken already this

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Speaker 1: morning to the Chief Minister about this latest report from

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Speaker 1: the a Triple C into domestic airfares, but joining me

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Speaker 1: on the line right now to shed a little bit

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Speaker 1: more light on the situation in terms of those hotel

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Speaker 1: occupancy rates. It is Tourism Accommodation Australia Chief Executive Michael Johnson.

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Speaker 1: Good morning to you, Michael.

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Speaker 2: Good morning Katie.

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Speaker 1: Great to have you on the show. Michael, can you

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Speaker 1: break down the current occupancy rates and how they compare

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Speaker 1: to those pre COVID types.

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Speaker 2: Look, it's interesting as we're moving into the dry season

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Speaker 2: and as we know it's the busiest time for up North.

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Speaker 2: We're probably for the last twenty eight days we're sitting

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Speaker 2: on about fifty six percent and same time twenty nineteen

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Speaker 2: we're about seventy one and the same actually for last

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Speaker 2: year we were sitting up around seventy one percent as well.

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Speaker 2: So we've certainly seen seen a decline we think forward

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Speaker 2: bookings as we head further into the tri season will improve,

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Speaker 2: but it's interesting when you look at it now, and

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Speaker 2: it's and particularly when you look at some of those

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Speaker 2: flights and availability of flights. You know, with major markets

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Speaker 2: of Melbourne which is a huge market for Darwin and

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Speaker 2: the Northern Territory and you've only got you know, a

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Speaker 2: direct flight every two days, which is quite incredible from

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Speaker 2: one of your largest source markets.

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Speaker 1: It is incredible. And then Michael correct me if I'm wrong,

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Speaker 1: But a lot of the time when you're catching those flights,

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Speaker 1: and I don't know if it's the situation for that

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Speaker 1: Melbourne flight, I haven't caught it recently, but a lot

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Speaker 1: of the time they're red eye as well, which makes

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Speaker 1: it pretty hard if you've got a young family.

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Speaker 2: Very true, very true. And and interestingly as well, you've

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Speaker 2: still we're still waiting on Virgin to put direct flights

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Speaker 2: back in as well, so if you're flying with Virgin,

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Speaker 2: you've sort of you've better go through Brisbane or go

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Speaker 2: through through Adelaide. And it's interesting, so you know, and

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Speaker 2: previously pre pandemic you had Tiger that was that was

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Speaker 2: flying there as well, so certainly a bit of change

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Speaker 2: around in those domestic flights making it more difficult. And

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Speaker 2: the other one is that the direct flights you can

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Speaker 2: get are very expensive, which which makes it difficult as well.

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Speaker 2: But I was going to say we've we've there's a

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Speaker 2: few other things as well. I think, you know, last

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Speaker 2: year we had we had that wonderful pen up demand.

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Speaker 2: Everyone wanted to go to everyone wanted to We were

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Speaker 2: as Australians, I think we weren't keen to go overseas yet,

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Speaker 2: so that we wanted to go and see something new

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Speaker 2: and different, and certainly that's certainly what the North has

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Speaker 2: to offers. I think from that perspective it was really

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Speaker 2: successful last year. Also, the NT government had some really

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Speaker 2: good vouchers remember the bout. They were great and they

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Speaker 2: were fantastic. So you've got a sort of few things

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Speaker 2: that are going against us, and then we go back

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Speaker 2: to pre pandemic. Of course, our international rivals still are

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Speaker 2: back to where they were as well. So there's a

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Speaker 2: number of factors. And we're starting to see with Australians

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Speaker 2: now getting more adventurous and heading back off shore, and

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Speaker 2: they're heading back off shore in numbers. Then we're seeing

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Speaker 2: the seasonality come very much back into the market right

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Speaker 2: around the country.

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Speaker 1: Michael, are our issues with crime having any impact as well?

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Speaker 2: Here? Look, I think there's certainly media around the crime issue,

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Speaker 2: particularly Alice Springs. We've certainly seen that down South thing,

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Speaker 2: more not more than that, and I don't think there's

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Speaker 2: certainly there's there's really been a lot in the media

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Speaker 2: with regards to other crime issues, but certainly Alice Springs

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Speaker 2: has been around in the media.

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Speaker 1: Do we have any idea as well, you know, with

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Speaker 1: the flights that we have got at this point in time,

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Speaker 1: and I know that there's clearly been a reduction, do

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Speaker 1: we have any idea if those flights are full, like

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Speaker 1: are they? You know, do we have the demand at

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Speaker 1: this point in time to even you know, sort of big,

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Speaker 1: big or play four extra flights to be brought online?

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Speaker 2: Well, look, I know that, and again having having flown

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Speaker 2: up last week, the flights are on. We're all busy, right,

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Speaker 2: busy coming certainly going in and coming out. So yeah,

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Speaker 2: I'd say there's plenty of demand and that demands ik

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Speaker 2: going to continue as well. With you know, as you did,

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Speaker 2: you draw closer to some of the major events you've

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Speaker 2: got coming, which are always great for your cards.

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Speaker 1: Now tell me, we know I'm not sure whether you've

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Speaker 1: had much of a chance to look into it today,

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Speaker 1: but the A Triple C have released a report today

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Speaker 1: into those flight costs intercarriers, calling for eelines to pass

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Speaker 1: on reductions in fares to passengers. What impact do you

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Speaker 1: think the price affairs is having and do you think

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Speaker 1: that it would make a difference if it's passed on,

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Speaker 1: particularly in a market like the territory.

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Speaker 2: Look, I think it would certainly make a difference because

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Speaker 2: whilst those flights domestically have gone up, the flights for

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Speaker 2: international and when I say international, not the Longhoul International,

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Speaker 2: but likes of Short Hall International seem to be more

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Speaker 2: affordable than some of our domestic fears. I think if

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Speaker 2: those savings will passed on the passenger, which certainly seem

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Speaker 2: increase in some of our leisure components.

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Speaker 1: So, Michael, from your perspective as the chief executive of

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Speaker 1: Tourism Accommodation Australia, what do you think make a real

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Speaker 1: difference for us here in the territory when it comes

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Speaker 1: to those hotel occupancy rates? Is it realistically you know,

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Speaker 1: more flights and fairer prices.

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Speaker 2: I think it's definitely both of those, Yes, correct, and

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Speaker 2: I think there's a knock on effect as well, because

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Speaker 2: if your hotels don't have as many guests staying, then

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Speaker 2: that's less people in the restaurants, that's less people doing

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Speaker 2: activities and tourism activities, etc. From a visitor economy perspective,

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Speaker 2: it's certainly it's not good now. It's not all doom

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Speaker 2: and gloom, Katie. There's certainly some good bookings on the horizon,

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Speaker 2: and you'd like to think that some of these things

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Speaker 2: that are happening at the moment with regards to the

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Speaker 2: ahble S Report and what have you, that we see

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Speaker 2: some response and that we see things pick up and

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Speaker 2: that you have a great strong season as you.

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Speaker 1: Should well, let's hope so. Tourism Accommodation Australia Chief Executive

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Speaker 1: Michael Johnson really apreciate it. You having a chat with

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Speaker 1: us this morning and I'm sure we'll talk to you

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Speaker 1: again soon.

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Speaker 2: Thanks for having me on, Katie. Thank you