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In the latest data and insights pdf from New Zealand’s Hotel Performance Focus (Horwath HTL) December 2023 to January 2024, our summer season is witnessing a tourism revival, driven largely by an influx of American visitors, breathing life back into the industry.
From the data, Revenue Per Available Room (RevPAR) across New Zealand’s key hotels saw a promising uplift of 9% over the previous year, and a 4% increase compared to the same period before the Covid-19 pandemic, as per Hotel Data New Zealand (HDNZ). The key players were Queenstown, Christchurch, and Nelson/Marlborough, each reporting growth exceeding 20% year-on-year. However, Wellington witnessed a 6% decline in RevPAR, attributed to a significant increase in available rooms and a drop in Average Daily Rate (ADR). Auckland, too, tells a story of struggle, with RevPAR yet to rebound to pre-pandemic levels due to a significant increase in room supply.
Yet, a broader narrative of recovery emerges. Overall hotel occupancy climbed to 71%, marking a vast improvement from the previous year, although still short of the pre-pandemic peak. The resurgence is supported by a 37% surge in international guest room nights, led by visitors from the USA and China.
In Auckland, where the hospitality scene buzzed with the openings of the Te Arikinui Pullman at Auckland Airport and the Intercontinental Hotel, showing a strong confidence in the market’s long-term possibility. Christchurch, kept afloat by increased air capacity and the return of direct flights from global carriers, and enjoyed a roughly 25% spike in room nights sold.
For Queenstown, where despite no new major hotel openings, the city benefitted from an surge in arrivals, especially from Australia. Rotorua, too, shared in the bounty, with a significant increase in occupancy driven by international visitors from the USA, China, and South Korea, even as domestic room nights dipped.
