The Huon Valley is celebrated for its natural beauty, food and drink, and festivals. But being only 30 to 45 minutes from Hobart, it is an easy day trip. The region misses out on the value overnight stays bring through accommodation, dining and evening spending.
Destination Southern Tasmania engaged episteme to review accommodation supply and demand across the Huon Valley, and to advise on the viability of attracting investment in an accommodation and conference venue. We audited around 150 accommodation providers across towns from Cygnet to Southport, analysed Tasmanian Visitor Survey data, and benchmarked the valley against Richmond, New Norfolk and Bicheno.
We found that accommodation alone won’t change visitor behaviour. Without a night-time economy or a critical mass of attractions in the Deep South, the region is seen as a day trip. Seasonality, competition from Hobart and rising costs also make it hard to attract hotel investors. We recommended a broader overnight activation strategy. Accommodation investment is most likely to succeed at either end of the market: a high-end stay that is an attraction in its own right, or a hostel or worker accommodation.