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New Zealand’s hotel industry has emerged from a challenging winter with a mixed bag of performance metrics, according to the latest “End of Winter Blues” report by Horwath HTL.
The report highlights that while the sector faced slower demand during the colder months, there are encouraging signs of resilience as the country heads into spring and summer.
The report notes a drop in overall occupancy rates compared to the same period last year, mostly due to reduced domestic travel and fewer major events. However, average daily rates (ADR) have remained strong, suggesting that hoteliers have been successful in maintaining pricing power despite softer demand. In Auckland, ADR increased by 4% year-on-year, while Wellington saw a 3% rise.
Queenstown recorded a slight uptick in occupancy, driven by a strong influx of international visitors seeking winter sports and adventure tourism. However, other regions, like Rotorua and Christchurch, faced a tougher climate, with both cities experiencing a decline in occupancy and ADR.
Horwath HTL’s report emphasises that while the winter months have been a challenge, the outlook for the rest of 2024 remains positive. The return of international flights, easing of travel restrictions, and a calendar packed with events, including major concerts and sporting fixtures, are expected to boost occupancy rates and revenue per available room (RevPAR) across the country.
The report also points out that hoteliers are focusing on enhancing guest experiences and investing in property upgrades to attract a broader range of travellers. This proactive approach is likely to position the sector well as global travel continues to rebound.
