8695.0 - Accommodation Services, Australia, 2003-04  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 15/08/2005   
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August 15, 2005
Embargoed: 11:30 AM (AEST)

Accommodation generates $8 billion in income

Australia's accommodation businesses generated $8 billion in income during 2003-04, according to figures released today by the Australian Bureau of Statistics (ABS).

Businesses providing accommodation services ranged from motels to student residences. Just under two-thirds (66%) of total income was generated from takings from accommodation. Takings from meals accounted for 15% of all income with the sale of liquor and other beverages 6%.

Accommodation businesses reported an operating profit before tax of $780m, which represented an operating profit margin of 10% during 2003-04.

Accommodation businesses were predominantly small with most (74%) employing fewer than 10 people. These businesses generated 18% of all income and had an operating profit before tax of $230m.

In contrast, businesses employing 50 or more people accounted for just 5% of all businesses in Australia, but generated nearly 60% of all income. The operating profit before tax of these businesses was $310m.

The Accommodation Services survey also found that at the end of June 2004:
  • There were 5,700 accommodation businesses operating in Australia.
  • Over one-third (38%) of accommodation locations were motels.
  • One fifth of accommodation locations were caravan parks.
  • There were 90,000 people working in accommodation businesses, nearly half (45%) worked as casuals. Women made up over half (60%) of all employed.
  • Expenses totalled $7 billion during 2003-04. The single largest expenditure item was labour costs (35%).
  • New South Wales accounted for roughly one-third of accommodation businesses, employment and total income in Australia (33%, 31% and 32% respectively).
  • Queensland accommodation businesses comprised just over a quarter (26%) of all businesses, 29% of all employment and 31% of all income.

Further information is in Accommodation Services, Australia, 2003-04 (cat no. 8695.0)