Major events like Sydney’s NYE fireworks and Melbourne’s Grand Prix are driving record hotel revenues in Australia, highlighting the power of event tourism.

The Sydney Harbour New Year’s Eve (NYE) fireworks display in 2023 emerged as the most profitable event of the year, driving a 32% increase in hotel occupancy and a remarkable 129% rise in the average daily rate (ADR). This iconic celebration contributed an additional $51 million to room revenues. Close behind, the Australian Grand Prix in Melbourne added $50 million in extra room revenue. Meanwhile, Brisbane’s standout event, the 2024 NRL Magic Round, generated $14 million in supplementary hotel earnings.

Ally Gibson, Head of Hotels Research at CBRE, underscored the importance of hosting a diverse mix of events, ranging from global spectacles to local and off-season attractions, to sustain consistent demand in the hospitality industry. She highlighted that while high-profile events typically span shorter durations, they significantly drive occupancy and rate growth. Gibson also emphasized the necessity of strategic planning and event diversification to ensure long-term gains for both the hotel sector and the wider economy.

Troy Craig, CBRE’s Regional Director of Hotels Valuation & Advisory, expressed a positive outlook for Sydney, Melbourne, and Brisbane’s 2025 event calendars. He noted that these events would play a crucial role in maintaining steady hotel demand throughout the year, encouraging long-term investments, and boosting employment in the hospitality industry.

Craig further elaborated on Sydney’s position as a leading destination for major events, attributing this to its status as a cultural, business, and tourism hub. The city’s 2025 lineup is expected to feature a dynamic mix of international and domestic events. Melbourne continues to strengthen its appeal with global conferences, driving demand for accommodations, while Brisbane is solidifying its reputation as a top-tier event city, cementing its role in Australia’s tourism and hospitality landscape.