Bumper January for Sydney hotels

Sydney

Sydney has reinforced its position as Australia’s top destination for both domestic and international visitors, with record-breaking hotel occupancy rates throughout January 2025. The vibrant city saw an influx of tourists, drawn by major events, cultural experiences, and ideal summer weather, making January a bumper month for the city's hospitality sector.

From the excitement of Sydney New Year’s Eve to the bustling Lunar New Year celebrations and Australia Day events, Sydney hosted thousands of visitors from around the world. STR preliminary data shows that hotel occupancy soared, with Sydney hotels achieving a remarkable 94.5% occupancy rate on New Year’s Eve. This high demand led to record average daily rates, demonstrating the city’s enduring appeal as a premier global tourist destination.

A Month of Record-Breaking Occupancy Rates

Sydney’s hotel occupancy continued to climb year on year, with significant improvements throughout the month of January. During the week starting 29 December 2024, the city’s hotel occupancy hit 86.4%, up from 79.5% in the same week the previous year. The momentum didn’t slow, with occupancy rates reaching 71.3% in the week beginning 5 January, 71.6% the following week, and peaking at 75.8% in the week starting 19 January. The surge in bookings was especially noticeable during the week commencing 26 January, when Sydney's accommodation occupancy reached 81.2%, a significant increase from the 70.1% recorded during the same period in 2024.

Major Events Fueling Visitor Demand

Several major events throughout January played a key role in attracting both international and domestic visitors to the city. The Sydney New Year’s Eve celebrations drew over a million spectators to the iconic Sydney Harbour foreshore, where crowds gathered to witness one of the world’s most famous fireworks displays. This celebration, along with the festive atmosphere of the city’s summer events, set the tone for a record-breaking month.

Sydney’s Lunar New Year celebrations also contributed to the surge in tourism, offering a rich mix of cultural experiences, performances, and traditional festivities. The Australia Day celebrations, including the popular Australia Day in Sydney program, helped further boost hotel bookings and solidify the city’s status as a must-visit destination in January.

Minister for Tourism, John Graham, commented, “It’s great to see occupancy rates up this January. We expect this to continue as we work to bring our city back to life and grow our state’s visitor economy. Visitors are getting the message that January is an incredible month to be in Sydney. With stunning weather, world-class events, and a dynamic mix of cultural and natural beauty, Sydney offers something for everyone.”

Destination Marketing: Feel the Sydney Side of Summer

To capitalize on this peak season, Destination NSW has rolled out its Feel the Sydney Side of Summer campaign, which runs from December 2024 to February 2025. The campaign highlights the city’s unmatched combination of natural beauty, cultural experiences, and high-profile events, ensuring that Sydney’s tourism industry stays top-of-mind for travelers both domestic and abroad.

Karen Jones, Acting CEO of Destination NSW, remarked, “Sydney’s vibrant energy and bustling hotels throughout January were a clear testament to the city’s growing appeal. With occupancy rates peaking at 86.4% in the first week, we’ve seen almost seven percent more visitors than the same period in 2024. This is a clear indicator that Sydney continues to be Australia’s number one capital city destination."

In addition to the city’s well-known landmarks like the Sydney Opera House and Bondi Beach, visitors were also drawn to Sydney's diverse cultural offerings, from blockbuster musicals to café culture, Aboriginal tourism experiences, and lively bars. This influx of tourists has also benefitted the local economy, boosting jobs and visitor spending, and reinforcing Sydney’s reputation as a premier destination for both leisure and business travelers.

Strong Domestic and International Appeal

According to the latest Tourism Research Australia data, Sydney continues to be the most popular Australian capital city for both domestic and international visitors. In the year ending September 2024, Sydney welcomed 33.7 million domestic visitors, contributing a significant $15.9 billion to the local economy. These visitors stayed a total of 31.4 million nights across the city’s hotels, motels, and accommodation venues.

The international market also saw impressive growth, with 3.4 million international visitors flocking to Sydney, staying for a total of 81.8 million nights and spending $10.9 billion in the state.

Looking Ahead

As Sydney continues to recover and grow its status as a must-visit destination, the city is poised to build on its success in 2025. From iconic events like the Sydney Festival, United Cup, and Sydney Test to its natural beauty and cultural landmarks, Sydney offers a year-round destination that keeps visitors coming back for more.

As Destination NSW continues its dynamic marketing efforts, Sydney’s tourism industry is set to continue its strong momentum. With plenty of exciting events on the horizon, including the Sydney Royal Easter Show, Vivid Sydney, and a host of international sporting events, the city is ready to welcome more visitors and maintain its place as Australia’s leading capital city for tourism.

For visitors looking to explore Sydney’s stunning blend of natural beauty, cultural experiences, and world-class events, January 2025 proved to be the perfect time to experience everything this remarkable city has to offer.