The first quarter of 2024 brought vibrant economic activity to the city, marked by major events and record-breaking tourism figures. While the visitor economy is thriving, showing strong gains in revenue and traffic, Adelaide’s main streets are experiencing mixed trends. Explore key findings from the Q1 2024 Visitor Economy, Activity, and Main Street Occupancy Reports below.
Visitor Economy
The first quarter of the year started off strong for the city’s visitor economy, with a boost in tourism expected to continue throughout April, featuring events like the AFL Gather Round, LIV Golf Adelaide, the Australian Athletics Championships, and the Adelaide Equestrian Festival.
- Major events such as the Adelaide International, Tour Down Under, Adelaide Fringe, Adelaide Festival and WOMADelaide, combined with business events, attracted a high level of visitor nights and strong revenue for accommodation providers and city businesses.
- International and domestic travel was 10% higher when compared to Q1 2023, with Adelaide Airport passenger volumes reaching record levels in March.
- The latest figures from hotel analytics firm STR showed that March 2024 was the strongest month on record, generating $43 million in revenue for accommodation providers within the City of Adelaide.
- Business events brought in an estimated $45 million in economic stimulus and almost 45,000 bed nights in Q1, with many large medical conferences hosted in Adelaide.
- Interstate expenditure performed better than domestic intrastate visitor spend, with the annual change higher for interstate visitors throughout the quarter. The highest-spending states were Victoria and New South Wales.
Source: Str (Metropolitan city areas)
Check out the full report here.
Activity
The city continues to exhibit strong activity levels, as overall activity for Q1 2024 was consistent with Q1 2023 and the previous quarter. Activity levels are expected to trend upwards for the upcoming quarter. As interest rates remain stable and stage 3 tax cuts are realised, consumer spending patterns are likely to improve later in the year.
- The return of international students and office workers to the city has been a catalyst for increased expenditure during work hours, boosting the daytime economic activities, such as dining and retail spending.
- Dining remains the primary contributor of consumption, accounting for 46% of the total spend and increasing 6% when compared to Q1 2023.
- Night time expenditure for the quarter increased over the previous year, with February experiencing the most significant rise in night time activities, up 13% annually. Additionally, bars and clubs showed signs of revival, with the decline in revenue narrowing down to 9% this quarter, improving from a previous 18% drop in Q4 2023.
- Parking within the city continues to decline, while public transport use continues to rise. This behaviour is likely an indication of a growing preference for more cost-effective modes of transport by city users.
Source: AEDA Activity Level Model
Check out the full report here.
Main Street Occupancy
Adelaide's main streets experienced a mix of challenges and improvements in commercial property occupancy.
- Hutt Street, O'Connell Street, Rundle Street, Grote Street, and Halifax Street all reported better occupancy figures compared to previous quarters.
- Hindley Street vacancy rates grew with now a quarter of all commercial shopfronts unoccupied.
- This reflects a broader trend affecting Melbourne Street and Gouger Street, both of which also saw increases in vacant properties.
- New businesses on Hutt and Melbourne Streets such as Laterría, Trims House Barbers, Sofia, Vellotti Lawyers, UR Pizzeria, Panini Kitchen & Co, and Tactix, signal diversity in the local business landscape and may stabilise the occupancy rates.
Check out the full report here.
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