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Australian Tourism Chief Executive Ward Tilbrook questions $60million hotel in Adelaide

Although competitors and Councils are supporting the development, South Australia’s top independent tourism body has said there is no need for a $60 million hotel at Adelaide Airport. The hotel would form part of a $1 billion expansion of the airport, which the Federal Government approved in January.

“Outside of March, it could be argued Adelaide hotel occupancy levels wouldn’t warrant additional beds – particularly after recent hotel development,” said Mr Tilbrook.

The Chief Executive expressed concerns that the hotel would not be “a viable proposition” and would take business from other hotels in the area. Adelaide Airport is relatively close to the city resulting in popular accommodation options in the CBD and Glenelg. The planned hotel would be at least six storeys tall and include 160-265 rooms, meeting and function rooms and restaurants.

Holdfast Bay Council’s submission the plan largely supports the development. In direct competition with Glenelg Hotels, the Council wants the hotel to focus on “fly-in, fly-out” travellers. The airport envisions construction to begin in mid-2016 to be complete by early 2018. The overall airport expansion is expected to be completed over the next five years.

Oaks Hotels & Resorts, which owns two hotels in Glenelg and three other properties throughout SA, welcomes the proposal.

“Any new development in South Australia brings its usual criticisms, however, we see the proposed Adelaide Airport hotel as a positive step for the state’s tourism, resulting in renewed competition among hoteliers vying for business,” Oaks sales general manager Daniel Csortan said. Adelaide Airport’s General Manager, Brenton Cox, said an increase in interstate and international visitors had seen a rise in demand for hotel accommodation.

“Adelaide Airport’s passenger numbers have grown substantially in recent years, and a significant percentage of these passengers are business travellers who are looking for the convenience of a close hotel to make it easier to catch early morning flights the following day,” Mr Cox said.

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