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Perth hotel rates tipped to jump 30pc

Plans for more inner-city hotels will not stop Perth's room rates soaring nearly three times the national average rate over the next three years.

In its latest forecasts for the Australian tourism industry to be released today, Deloitte Access Economics said the average price of a Perth hotel room would increase 30 per cent by December 2015 from $199 to $259.

In that period, the national average room rate is expected to rise from $149 to $167. The expected rise would cement Perth hotel rooms as Australia's most expensive - well ahead of Sydney ($195 last year to $218 in 2015), Brisbane ($175 to $207) and Melbourne ($179 to $203).

Deloitte said Perth's occupancy rates, the highest in the country, fell slightly in December to 85.1 per cent.

Perth's hotel capacity was boosted when Fraser Suites in the Queens Riverside development opened in October but occupancy rates suggested more hotel rooms were still needed.

"Most of the larger hotel developments planned for Perth are not expected to open for at least 18 months," Deloitte Access Economics said.

"While the peak of the mining boom is predicted to have passed by the end of 2013, with demand for travel to WA expected to soften, Perth occupancy rates are forecast to gradually increase over the forecast period to 86.3 per cent by December 2015."

Room rates were also forecast to continue to grow strongly, increasing at an average rate of 9.3 per cent a year for the next three years. Recently announced developments include projects at Elizabeth Quay, Burswood and on the old FESA site in Hay Street.

Australian Hotels Association WA chief executive Bradley Woods said room rates were a balance between supply and demand.

"The WA Government has a target of an additional 1900 hotel rooms for Perth over the next six years and developments are on track to meet this goal," he said. "Room rates are, however, unpredictable and we have seen huge fluctuations of up to 50 per cent reductions in the past 10 years."

Tourism WA chief executive Stephanie Buckland said new hotel projects were needed to keep the market stable and more affordable.

"There is no quick fix to Perth's hotel room shortage and it takes a significant amount of time to develop and build new hotels," she said.