More than $3 billion will be spent in capital development to provide more than 4000 new hotel rooms in Perth and Fremantle in the next five years.
But while the Australian Hotels Association (WA) is celebrating the potential for as many as 40 new hotels, backpackers and serviced apartments, CEO Bradley Woods says Perth Airport has to pick up its game.
There has been talk of a short-term accommodation being developed in the airport vicinity for many years, but still no definite plans have been put onto place.
"Perth Airport has needed short stay accommodation for over a decade," Mr Woods said on Thursday.
"It has fallen well behind in meeting the demands of the tourism industry, the accommodation industry in encouraging short stay accommodation there - something like a capsule hotel or short stay accommodation that we see in other capitals around Australia.
"There is no excuse for it any more. Perth airport has to pick its game up."
A 250-bed hotel in Elizabeth Quay, a 266-bed Amara business hotel in Adelaide Terrace, a 230-bed development at Barrack Square, a 300-bed Westin Hotel at the old FESA building site, the 126-room extension of the Duxton Hotel and the new 500-room Crown Towers are a taste of what is coming to Perth.
Mr Woods said that the investment is the largest spent at any one time in WA and almost matches what occurred in Sydney during its pre-Olympic Games period.
He said it will give Perth the opportunity to pitch for the larger events and conferences that are currently taking place in other cities around the world.
"This is a result of the state government, the City of Perth and the City of Fremantle improving and developing better guidelines and scenarios for hotel investment and development," he said.
"What that has resulted in is a new level of interest and confidence from hotel developers, investors and hotel management companies from throughout the world.
"It will set WA up for the next 20-30 years as a leader in the development of the hotel market and will develop a high level of confidence in the airline, tourism and service markets."
Mr Woods said that while there was a risk of introducing too many hotel rooms to the market, he thought it was a huge opportunity for Perth to expand the demand from leisure tourists and convention travellers.
"Airlines considering coming into WA will see there is increased capacity for hotel accommodation," he said.
"There is always a risk we'll revert to what happened in late 90s where we had too many hotel rooms. But it's critically important that the WA government works with the tourism industry and the hotel sector on driving demand to fill those rooms.
"We have to meet the challenge of attracting more visitors to the state.
"The WA State Government tourism strategic plan for 2020 identified that 1900 rooms are required for Perth to keep pace with corporate and leisure demand. The AHA believes that that number will be well exceeded by the end of the decade."
- Elizabeth Quay – 250 rooms ($300m estimate)
- Ibis Styles Hotel, 69 Adelaide Tce – 200 ($22.5m)
- Amara Business Hotel, 190 Adelaide Tce – 266 ($280m)
- Holiday Inn Express, 257 Adelaide Tce – 224 ($35m)
- Barrack Square – 230 ($100m)
- Old Treasury Building, 28 Barrack St – 48 ($208m)
- Wombat Backpackers, 195 Hay St – 156 ($16m)
- Carlton Hotel, 248 Hay St – 59 ($45m)
- Quincy Boutique Hotel, 281 Hay St – 56 ($6m)
- Westin Perth, 480 Hay St – 300 ($250m)
- AHL Rydges, 123 Murray St – 184 ($21.5m)
- Melbourne Hotel, 942 Hay St – 39 ($30m)
- Murray Hotel, 718 Murray St – 80 ($13.9m)
- 33-39 Milligan St – 132 ($135m)
- West Perth Hotel, Cnr Hay and Ventnor Sts – 88 ($14m)
- Duxton Hotel, 1 St Georges Tce – 126 ($100m)
- The Oaks, 623 Wellington St – 118 ($14.9m)
- 783-789 Wellington St – 216 ($14.3m)
- Old Emu Brewery, 98 Mounts Bay Rd – 120 ($350m)
- Parker St Hotel – details TBA
- City Lights, 137 Newcastle St – 79 ($9.8m)
- Old Crow Boutique Hotel, 172 Newcastle St – 20 ($1.5m)
- Hotel Alex Perth, 214 William St – 74 ($ value TBA)
- ACE Cinema Hotel Subiaco, 500 Hay St – 217 ($95m)
- Billabong Backpackers Resort, 381 Beaufort St – 138 ($45m)
- Crown Towers, Burswood – 500 ($568m)
- Ascot Inn, Epsom Ave – 42 ($5.8m)
- Springs Rivervale, Great Eastern Highway – 226 ($ value TBA)
- Metro Hotel Perth, 61 Canning Hwy – 12 ($3.5m)
- 52 Adelaide St, Fremantle – 151 ($18m)
- Woolstores, 2 Point St, Fremantle – 154 ($ value TBA)
- 279 Newcastle St – 29 ($4m)
- 176 Adelaide Tce – 98 ($14.5m)
- 63 Bennett St (self-serviced) – 25 ($6m)
- 8 Pakenham St, Fremantle – 70 ($15m)
- 43 Mew Road, Challnger Harbour, Fremantle – 42 ($10m)
- Fraser Suites – 256 ($450m total project)
- 54 Kings Park Rd – 72 ($9m)
- 4 Walker Ave, West Perth – 51 ($8.5m)
- Country Comfort, 47 Hardey Rd, Belmont – 62 ($5.5m)
- Details provided by AHA (WA)