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Accommodation
The accommodation industry, an important part of the tourism and hospitality sector, consists of hotels, motels, caravan parks and similar businesses mainly engaged in providing short term accommodation. It excludes those hotels that provide short term accommodation, but whose main activity is selling alcoholic beverages for consumption on the premises.
At 30 June 1998 there were 6,143 businesses in the accommodation industry. This represented a 16% increase over the number at June 1996. These businesses employed a total of 97,201 persons at 30 June 1998, an increase of 20% since June 1996. Females accounted for almost 59% of total employment within the industry.
As table 21.11 shows, the total income of the industry in 1997-98 was $6,763m, with takings from accommodation accounting for the majority (61%) of this total. Other significant income items included takings from meals (17%) and sales of liquor and other beverages (8%). Labour costs ($2,035m) accounted for just over 32% of total expenses ($6,269m), making it the most significant expense item. The resulting operating profit before tax in 1997-98 was $502m, representing an operating profit margin for the period of 7.8%, the same as for 1995-96.
21.11 ACCOMMODATION INDUSTRY |
|
| | 1995-96
no. | 1997-98
no. | Increase
% |
|
| Businesses at 30 June | 5,288 | 6,143 | 16.2 |
 |
| | persons | persons | % |
|
|
| Employment at 30 June | 81,086 | 97,201 | 19.9 |
| | | |
| | $m | $m | % |
|
|
| Income | | | |
| - Takings from accommodation | 3,253 | 4,141 | 27.3 |
| - Other income | 2,006 | 2,621 | 30.6 |
| - Total | 5,259 | 6,763 | 28.6 |
| Expenses | | | |
| - Labour costs | 1,592 | 2,035 | 27.8 |
| - Other expenses | 3,265 | 4,234 | 29.7 |
| - Total | 4,857 | 6,269 | 29.1 |
| Operating profit before tax | 401 | 502 | 25.2 |
| | % | % | |
|
|
| Operating profit margin | 7.8 | 7.8 | . . |
|
| Source: Accommodation Industry, Australia, 1997-98 (8695.0). |
Clubs, pubs, taverns and bars
Along with the accommodation industry, the clubs, pubs, taverns and bars industries are important elements of the tourism and hospitality sector. The clubs industry covers businesses mainly engaged in the provision of hospitality services to members, while the pubs, taverns and bars industry covers businesses which mainly sell alcoholic beverages for consumption on the premises.
At the end of June 1998, there were 8,541 businesses in the clubs, pubs, taverns and bars industries combined, employing 148,996 persons (table 21.12). During 1997-98, the total income of the clubs, pubs, taverns and bars industries was $14,266m, an increase of 28% over 1994-95. After expenses, the combined operating profit before tax for these industries was $1,242m, representing an operating profit margin of 8.8%.
At 30 June 1998, there were 3,749 businesses in the clubs industry, a 14% increase in the three years since June 1995. Employment increased by almost 8% in the same period, to 67,272 persons at 30 June 1998. The majority (56%) of employees worked on a casual basis.
The provision of gambling services is an important aspect of the clubs industry; 53% of the total income of the industry in 1997-98 was attributable to gambling. The clubs industry generated total income of $6,013m in 1997-98 (an increase of 27% since 1994-95); after expenses this resulted in an operating profit before tax of $561m. The operating profit margin for the clubs industry was 9.4%, clubs with gambling facilities having a higher operating profit margin (9.6%) than clubs without gambling facilities (7.1%).
There were 4,792 businesses in the pubs, taverns and bars industry at 30 June 1998, an 11% increase since June 1995. In the three years from June 1995, employment in the industry increased by 14% to 81,724 persons at 30 June 1998. As in the clubs industry, most employment (65%) in the pubs, taverns and bars industry was on a casual basis.
The increasing influence of gambling activity in the pubs, taverns and bars industry was reflected in the 130% increase in gambling income in the period 1994-95 to 1997-98. Businesses in the industry generated gambling income of $1,326m in 1997-98. Despite this growth, sales of liquor and other beverages ($5,848m) were still the major source of income. After expenses, operating profit before tax in the industry was $681m. In terms of operating profit margin, pubs, taverns and bars with gambling facilities outperformed those without gambling facilities (8.9% compared to 5.7%) in 1997-98. The overall operating profit margin for the industry was 8.3%, up significantly on 4.1% in 1994-95.
21.12 CLUBS (HOSPITALITY) AND PUBS, TAVERNS AND BARS INDUSTRIES |
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| | 1994-95 | 1997-98 | Increase |
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CLUBS (HOSPITALITY) |
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| no. | no. | % |
| Businesses at 30 June | 3,284 | 3,749 | 14.2 |
|
|
| | persons | persons | % |
| Employment at 30 June | 62,536 | 67,272 | 7.6 |
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| | $m | $m | % |
| Income | | | |
| - Sales of meals and alcohol and other beverages | 1,729.8 | 2,111.1 | 22.0 |
| - Takings from gambling | 2,355.4 | 3,207.6 | 36.2 |
| - Total | 4,729.4 | 6,012.5 | 27.1 |
| Operating profit before tax | 429.1 | 561.0 | 30.7 |
|
|
| % | % | |
| Operating profit margin | 9.2 | 9.4 | . . |
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PUBS, TAVERNS AND BARS |
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| | no. | no. | % |
| Businesses at 30 June | 4,325 | 4,792 | 10.8 |
|
|
| persons | persons | % |
| Employment at 30 June | 71,437 | 81,724 | 14.4 |
|
|
| $m | $m | % |
| Income | | | |
| - Sales of meals and alcohol and other beverages | 5,278.2 | 6,530.1 | 23.7 |
| - Takings from gambling | 576.1 | 1,325.6 | 130.1 |
| - Total | 6,390.1 | 8,253.3 | 29.2 |
| Operating profit before tax | 258.2 | 681.1 | 163.8 |
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|
| % | % | |
| Operating profit margin | 4.1 | 8.3 | . . |
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CLUBS (HOSPITALITY) AND PUBS, TAVERNS AND BARS |
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| no. | no. | % |
| Businesses at 30 June | 7,609 | 8 541 | 12.2 |
|
|
| | persons | persons | % |
| Employment at 30 June | 133,973 | 148 996 | 11.2 |
|
|
| | $m | $m | % |
| Income | | | |
| - Sales of meals and alcohol and other beverages | 7,008.1 | 8,641.3 | 23.3 |
| - Takings from gambling | 2,931.4 | 4,533.1 | 54.6 |
| - Total | 11,119.5 | 14,265.8 | 28.3 |
| Operating profit before tax | 687.3 | 1,242.1 | 80.7 |
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| | % | % | |
| Operating profit margin | 6.2 | 8.8 | . . |
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| Source: Clubs, Pubs, Taverns and Bars, Australia, 1997-98 (8687.0). |
Cafes and restaurants
Another important industry in the hospitality sector is the cafes and restaurants industry. This includes businesses mainly engaged in operating cafes and restaurants for consumption of meals on the premises and businesses mainly engaged in catering services. Businesses mainly engaged in selling takeaway food are excluded.
At the end of June 1999 there were 12,845 employing businesses in the cafes and restaurants industry (table 21.13). These businesses operated at 14,199 locations, comprising 4,552 licensed cafes and restaurants, 1,891 licensed and BYO cafes and restaurants, 2,748 BYO cafes and restaurants and 3,291 unlicensed cafes and restaurants. In addition, there were 1,716 locations operated by catering businesses. At the end of June 1999 the cafes and restaurants in the industry had 1,057,100 seats available for consuming food on the premises, which represented 85 seats per cafe and restaurant location.
During 1998-99, businesses in the cafes and restaurants industry generated $7,174m in income. Over half of this income (55%) was generated from sales of meals consumed on the premises. Sales of beverages accounted for a further $1,117m (16%) while catering services generated $1,265m (18%) of total income.
Total expenses of businesses in the industry during 1998-99 were $6,805m. The two largest expense items were purchases ($2,917m) and labour costs ($2,109m), which represented 43% and 31% respectively of total expenses.
During 1998-99, the industry recorded an operating profit before tax of $334m, representing an operating profit margin of 4.8%. The operating profit before tax (excluding caterers) represented an annual return per available seat of $251.
At the end of June 1999 total employment in the cafes and restaurants industry was 152,107 persons, of whom 63,093 (41%) were waiters and waitresses. Just over half (51%) of persons working in the industry were casuals, which was reflected in the average labour cost per employee of $15,000.
21.13 CAFES AND RESTAURANTS INDUSTRY - 1998-99
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| | Units | Value |
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| Businesses at 30 June - | | |
| - Licensed cafes and restaurants | no. | 4,197 |
| - Licensed and BYO cafes and restaurants | no. | 1,801 |
| - BYO cafes and restaurants | no. | 2,668 |
| - Unlicensed cafes and restaurants | no. | 2,861 |
| - Catering businesses | no. | 1,318 |
| - Total | no. | 12,845 |
| Employment at 30 June - | | |
| - Waiters/waitresses | persons | 63,093 |
| - Kitchen hands | persons | 25,655 |
| - Managers/supervisors | persons | 18,025 |
| - Chefs/cooks | persons | 28,893 |
| - Other | persons | 16,441 |
| - Total | persons | 152,107 |
| Income - | | |
| - Takings from meals consumed on the premises | $m | 3,947.7 |
| - Takings from take-away food | $m | 444.6 |
| - Takings from beverages | $m | 1,117.2 |
| - Takings from catering services | $m | 1,264.7 |
| - Other income | $m | 400.0 |
| - Total | $m | 7,174.3 |
| Expenses - | | |
| - Labour costs | $m | 2,109.4 |
| - Purchases | $m | 2,917.2 |
| - Rent of land, buildings and other structures | $m | 504.0 |
| - Other expenses | $m | 1,274.6 |
| - Total | $m | 6,805.2 |
| Operating profit before tax | $m | 334.2 |
| Operating profit margin | % | 4.8 |
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| Source: Cafes and Restaurants Industry, Australia, 1998-99 (8655.0). |
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