SYDNEY, July 31 (Xinhua) -- The price of hotels and airfares in Australia is expected to increase by roughly double that of the global average increase in 2020, according to a report released on Wednesday.
Leading business travel company CWT and the Global Business Travel Association's joint annual market forecast predicts that the price of flights in Australia will lift by 4.7 percent, while hotel rates will increase 4.4 percent, in local currency terms.
The increase is roughly double that of the expected global average increase of 2.3 percent for both hotel rooms and airline tickets.
Manager at CWT Asia Pacific, Jaclynn Kidd said that the price of flights was likely being spurred by a lower Australian dollar, which encourages domestic over international travel.
"Domestic business travel within Australia has been growing at a steady pace over the last few years and we expect it will pick up further in 2019 and 2020 due to the weakened Australian dollars," Kidd said.
Hotel rooms in Australia are also facing an increase in demand, which the supply of new hotels currently under construction is yet to meet.
"With more international travellers there is a compression in the supply of hotel rooms in major cities, as well as secondary cities like Canberra and Brisbane," Kidd said.
The sharper than average increase in hotel prices is expected to level out by around 2022.
