The FIFA Women’s World Cup, that kicked off July 20, has proved to be more than just a sporting event for New Zealand. The month-long event has given a massive boost to our hotel industry.
According to data reported by Hotel Data New Zealand (HDNZ), the Revenue Per Available Room (RevPAR) for main hotels in July increased by 25% compared to 2019 and saw a 27% increase from July 2022. This growth was mostly influenced by the World Cup, with cities like Auckland, Hamilton, Wellington, and Dunedin hosting matches and reaping the benefits.
The Average Daily Rate (ADR) wasn’t left behind either. It surged by 9% from last year and a huge 35% from the pre-pandemic rates of 2019. This growth in ADR was particularly noticeable in Auckland and Dunedin, which reported increases of 14% and 17% respectively compared to the same period last year.
In terms of room nights, major hotels in New Zealand sold 7% more than they did in July 2019. This is the biggest growth since the pandemic began, underscoring the positive impact of the World Cup on hotel demand. Auckland, in particular, saw an estimated increase of about 18% in room nights sold compared to 2019, a much-needed boost given the 23% increase in supply over the past four years.
Wellington’s hotels experienced a surge in the last 10 days of July, with occupancies reaching 77% in the week of 24-30 July. This was a welcome change, especially after a slowdown in government and business demand earlier in the year. Hamilton, on the other hand, saw its hotels fully booked on game days, with special event rates driving higher ADR.
However, in the report, inquiries from several Auckland hotels not contracted by FIFA indicated lower than expected demand from supporters on match days. This could be attributed to the important supply additions over the past few years. In addition, poor snow conditions in Queenstown during most of July meant hotel occupancies were below expectations.
While the World Cup’s influence on hotel performance is certain, it is still early days in declaring the hotel sector – or tourism in general – as fully recovered post-COVID. This is clear with the Hotel RevPAR performance over a 12-month period, that shows it is still slightly lower than pre-COVID levels. Hotels are still struggling with large cost increases, including labour, utilities, and insurance.
The FIFA Women’s World Cup 2023 has showcased the potential of major events in boosting New Zealand’s visitor accommodation sector, especially outside the peak summer season. With many countries competing for such events, continued support from central and local governments will be crucial in securing major events in the future.
