Hotel 'crisis' looms for new Sydney airport just months ahead of opening

The lack of hotels near the soon-to-be-opened Western Sydney Airport (WSI) has been flagged as a major issue that could potentially impact the initial economic benefits of the new airport.Due to open to passenger flights on October 25, operational trials at Australia's only 24/7 airport have been taking place, with cargo services set to officially start today.Adam Leto, chief executive of Western Sydney Leadership Dialogue, said the area badly needed more hotels."We have got thousands of visitors landing on our doorstep starting from the end of this year that are going to be looking to stay, play and spend time in Western Sydney," he said."And we want to be able to keep them here, not have them move across the city for accommodation."Mr Leto says more hotels are needed in the area to accommodate the numbers of projected passengers. (Supplied)He said there were some new hotels in the pipeline near WSI, as well as in Parramatta, some 40 kilometres away.Currently, there are only a handful of hotels within a 20km radius of the airport."There is no denying we have a hotel crisis at the moment. The state government has recognised there is a shortfall of beds in Western Sydney."A spokesperson for the planned 200-room Courtyard by Marriott hotel, set to be built near the airport, said "there is not an opening timeline to share at this stage".Established hotels set to benefitLauren Raffen is the owner and licensee of one of the hotels closest to the airport, the Wallacia Hotel.While her hotel is set to benefit from the influx of travellers, she is concerned Western Sydney will not be able to accommodate the projected numbers."There's not too much around for the travellers coming in," she said."I don't know how we're going to keep them out here because there is not enough [hotels]." Ms Raffen is also concerned about the lack of facilities locally for travellers. (ABC News: Adam Griffiths)She said there was great anticipation ahead of passenger flights in and out of WSI"There is a lot of excitement here in Wallacia, reservations too because of the aircraft noise," she said."But a lot of the locals are excited, and business owners are too because it's going to bring in a lot of people."The historic hotel is 14km west of the new airport and has 29 rooms with ensuites.According to the Wallacia Progress Association's website, the 1930s hotel was requisitioned by the army during World War II."During the Second World War the hotel was used as the Army headquarters for radiophysics," it said.The Wallacia Hotel is 14 kilometres west of the new airport. (ABC News: Adam Griffiths)With little public transport in the area, Ms Raffen said the hotel had plans to help passengers who have made reservations."We are putting a courtesy bus in place to make it convenient for travellers to and from the airport."She said the hotel, including its bistro and bar, already had many visitors from all over Sydney and the state on the weekends. There had also already been requests ahead of the airport's opening, especially from regional NSW."A lot of people from the state's Central West have said they will drive down and either stay the night before travelling if they have an early flight, or people planning to come in late at night have asked about staying here."Mr Leto said other hotels in nearby Liverpool, Penrith and Rooty Hill were also expected to benefit.Construction costs and red tapeAdding to the lag in new hotels, Mr Leto said, has been the cost of construction across Sydney. "The market conditions, particularly when it comes to costs, whether you are talking residential or new hotels, the cost of construction across the city, particularly Western Sydney is challenging at the moment."The cost of construction has been blamed as one of the reasons behind the lag in new hotel builds. (ABC News: Adam Griffiths)He added that red tape and the unknown were also factors."The market is also a little hesitant and not quite sure what the demand is going to look like," he said."But as soon as the planes start touching down and we start to see the numbers rolling in, I am expecting that will spur a bit more confidence."A spokesperson for WSI said it expected private sector investment to increase."We fully expect that the private sector will respond to this demand as it develops," they said."WSI has already been the catalyst for billions of dollars in broader infrastructure in the Western Sydney Aerotropolis, supporting road networks, and beyond."A spokesperson for the airport says "the private sector will respond to this demand". (ABC News: Adam Griffiths)Look to the future The spokesperson for WSI said business was expected to grow."Western Sydney International is built to meet demand for decades to come and will drive growth for the NSW visitor economy well into the future," they said."The airport is currently built to service 10 million passengers annually and will grow to service more than 80 million by the 2060s."Mr Leto said it would become a major economic centre for Western Sydney over the next decade."It is going to take some time, like the broader picture around the Aerotropolis. You know Rome wasn't built in one day."