Property developers and investors are increasingly focusing on Hobart ahead of the construction of the $1.13 billion Macquarie Point Stadium, as Tasmanian government data projects a significant shortfall in hotel accommodation by 2030. Currently, Greater Hobart offers approximately 4,500 hotel rooms, but officials say this capacity will not meet demand once the 26,000-seat stadium, set to be the home ground for the Tasmania Devils AFL team, opens in four years.
According to data from the Office of the Coordinator-General in Tasmania, around 60 percent of sports spectators attending events at the new stadium are expected to require commercial lodging. The remaining visitors, mostly from interstate, are anticipated to stay with family and friends. Business Events Tasmania (BET) chief executive Marnie Craig forecasts a marked increase in hotel room demand, particularly during off-peak periods, driven by the influx of visitors and business events following the stadium’s completion.
Craig indicated that the arrival of internationally branded hotels in Hobart could accelerate, citing the example of Accor’s Movenpick Hotel and the Marriott-owned The Tasman, both located in the city center. “Previously, we did not have a lot of international brand hotels. It’s based on the scale and demand,” she said. Craig also emphasized the importance of attracting visitors more evenly throughout the year in order to support sustainable growth in the local tourism sector.
Enhancements to Tasmania’s infrastructure are also expected to support this anticipated growth. The $130 million upgrade to Hobart Airport, completed last year, now allows the facility to accommodate larger wide-body aircraft, which could facilitate direct flights from Southeast Asia. Currently, international air service from Hobart is limited to New Zealand. Craig noted that one in six Tasmanians is employed in the hospitality industry, underscoring the sector’s significance to the state’s economy. She highlighted the growing incentive travel market, driven in part by increased domestic business events during the COVID-19 pandemic when overseas travel was restricted.
In addition to urban hotel developments, luxury accommodation options are emerging in surrounding areas. On Satellite Island, south of Hobart, owner Kate Alstergren offers a two-bedroom designer house for rent at $2,950 per night for two guests, including transportation from nearby Bruny Island, with additional guests charged $550 per person per night. Meanwhile, the luxury superyacht Odalisque II operates in the remote Port Davey region, providing four- to six-night itineraries for up to 12 overnight guests across seven cabins, and can host up to 50 people for cocktail events.
These developments signal rising confidence in Tasmania’s potential as a growing destination for both leisure and business tourism as the state prepares for new infrastructure and increased visitor numbers.