David Etherton

'For Middle East investors Western Australia offers geographical diversification from their traditional markets in a region with double-digit growth rates and fast growing hotel yields,' says David Etherton, Executive Director of Tourism Western Australia.

'At the moment Western Australia is benefiting from the same commodities boom as the Middle East. Hotel occupancy rates in Perth are over 80 per cent. But we see the most potential for differentiated hotel product types, something like the Al Maha desert resort in Dubai.'

Mr. Etherton was accompanied by the CEO of the largest local hotel chain Broadwater Hotels & Resorts, Scott Cogar for talks with potential investors during the conference.

'Western Australia has 600,000 international visitors a year. That does not sound many but they tend to stay longer than average and this is equivalent to two million visitors, plus we have 1.3 million internal inter-state tourists.

'Demand for our commodity exports is booming, mainly from China and India and these visiting executives also need accommodation. Tourism is important to Western Australia but not the main driver of the economy which is mining.'

Western Australia also offers a safe and convenient investment climate for foreign investors who are subject to the same taxation as local investors but have to pass an investment review board.

'This is exactly the same body that is currently reviewing the takeover of Qantas and will not take any different view of investors from the Middle East,' explains Mr. Etherton. 'As you know we have a long relationship in trading agricultural exports with the Middle East and have strong trading links in place.'

Meanwhile, property prices in the capital city Perth have benefited hugely from the commodities boom and are now on a par with Sydney. Again this type of investment performance ought to be attractive to foreign investors, but what about the recent strength of the Australian dollar as a deterrent?

'Well, that supposes that the Australian dollar is not going to get even stronger, and in this commodity up cycle that might be a better bet. For a foreign investor you get exposure to the currency, land prices and hotel yields, and we think that is an exciting proposition in a booming market like Western Australia.

'That is why the government decided to sponsor a conference in Dubai. It is not like investors are going to automatically think of a place like Perth which is geographically very isolated, and we thought it necessary to come here and educate people about our boom and how to participate in the hotel sector.'