8695.0 - Accommodation Industry, Australia, 1995-96  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 10/11/1997   
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November 10, 1997
Embargoed: 11:30 AM (AEST)

Accommodation industry profits rise

In 1995-96 the Australian accommodation industry recorded a 7.8 per cent operating profit margin, after experiencing an 8.4 per cent operating loss in 1991-92. The industry's pre tax profit in the 1995-96 financial year was $401 million.

These figures, contained in the Australian Bureau of Statistics publication, Accommodation Industry, Australia 1995-96, released today, confirm the industry's comeback since the beginning of the decade, and place it in better shape than 1986-87 when operating profit margin was 3.7 per cent.

Hotels operated by the 5,288 businesses in the industry recorded an operating profit margin of 4.4 per cent, compared to 14.8 per cent for motels and guest houses and 15.8 per cent for caravan parks. The relatively low profit margin for hotels was mainly attributable to those hotels with star grading of 4 or 5 (which recorded an operating profit margin of 2.9 per cent) and/or those with more than 100 rooms (3.8 per cent).

Accommodation industry businesses generated $5,259 million in income in 1995-96, of which 62 per cent ($3,253 million) was from the provision of accommodation. A further 26 per cent of income was generated from meal and liquor sales.

During the period 1995-96, businesses in this industry incurred $4,857 million in expenses. The major expense was labour which accounted for 33 per cent ($1,592 million) of total costs.

There were 81,086 people employed in the industry at the end of June 1996, an increase of 9 per cent since 30 June 1992. Full-time employment rose 14 per cent and part-time employment rose 3 per cent.

At the end of June 1996, 90 per cent of businesses in the industry employed fewer than 20 people. These businesses accounted for 31 per cent (25,525) of people employed in the industry and 53 per cent ($213 million) of the industry's operating profit before tax. In contrast, businesses employing more than 100 people accounted for 2 per cent of all businesses in the industry, but accounted for 49 per cent (39,459) of industry employment and 21 per cent ($84.3 million) of operating profit before tax.

Businesses mainly engaged in the accommodation industry in 1995-96 were concentrated in New South Wales, Victoria and Queensland. They accounted for 77 per cent of people employed in the industry and 79 per cent of total income.

Details are in Accommodation Industry, Australia 1995-96 (cat. no. 8695.0) available from ABS bookshops.