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New Zealand’s hotel sector recorded another strong month in June, but the recovery remains uneven, with international demand driving growth in gateway cities while many regional markets continue to face weaker domestic travel.
The latest New Zealand Hotel Performance Focus report from Horwath HTL and Hotel Council Aotearoa shows national revenue per available room (RevPAR) increased 8.6 per cent year-on-year in June, led by Queenstown, Christchurch and Auckland. Across the second quarter, RevPAR was up 10.4 per cent, although most regional markets recorded declines.
International visitors continued to underpin the sector’s performance, with international room nights rising about 22 per cent compared with June last year, while domestic room nights slipped 0.4 per cent. Tour group business also strengthened, increasing 43 per cent to account for 10 per cent of occupied room nights, up from 7 per cent a year earlier.
Christchurch and Queenstown continued to outperform, supported by strong international arrivals. Over the April-June quarter, the two destinations accounted for about 75 per cent of New Zealand’s growth in international border crossings, while Auckland remained the country’s largest gateway, handling about 70 per cent of all international arrivals.
Auckland hotels also benefited from business events, with the New Zealand International Convention Centre hosting nine major events that generated about 14,000 delegate days from outside the region. Occupancy rose five percentage points to 60.3 per cent, while room nights occupied increased 13.4 per cent during the quarter.
Regional destinations continued to experience more challenging conditions. Rotorua recorded its lowest June occupancy since 2022, while Dunedin, Hamilton and Nelson/Marlborough all reported quarterly RevPAR declines as weaker domestic demand and softer conference activity affected performance. The report notes higher fuel prices have also impacted domestic travel, including the postponement of a major conference because of increased travel costs for delegates.
International arrivals continued their recovery during June, reaching 94 per cent of June 2019 levels. While arrivals through Auckland Airport eased slightly, Christchurch and Queenstown recorded strong growth, with the report also highlighting a continued recovery in Chinese holiday travel, supported by improved access via Australia.
