Auckland hotels coping well despite a slow recovery

Auckland hotels coping well despite slower than expected recovery

Rugby World Cup will provide a short term boost to Auckland hotels after a slower than expected economic recovery over the past two years.

Speaking at NZ Hotel Council’s 2010 Annual Operating Survey presentation in Auckland this morning, NZHC Independent Chair Jennie Langley said hotels throughout the country were constantly adjusting to meet the needs of fewer travellers from traditional long haul markets, increased visitors from Asian countries, guests booking at the last minute and almost everyone looking for deals.

In 2010 NZHC’s 33 Auckland hotel members:
• achieved the highest annual occupancy rate of all NZHC members of 74.8%, which was well above the 2009 result of 69.7% and the national average of 69.4%.
• were fifth out of the eight regions for average room (ARR) rate at $133.10
• generated over $337m in revenue from a total of 6177 rooms and employed over 3900 people. They contributed almost $226m to the region through wages and salaries, food and beverage purchases, sales and marketing costs, room expenses such as laundry, electricity charges, rates and other expenditure - up from $217m in 2009 . Wages and salaries, and local council rates made up $119.7m and $6.9m respectively of this total.
Nationwide, the 2010 annual survey highlighted the slowing down of numbers from traditional markets such as the UK and United States, the continued importance of Australian visitors, and the return of the Asian markets, particularly South Korea and China. New Zealanders accounted for 54% of all rooms sold in Auckland last year, up from 49.5% in 2009, followed by Australians at 17%.

Ms Langley said compared to other regions, Auckland hotels predominantly relied on independent and leisure travellers (38% of rooms sold), followed by corporate guests (26%) and tours & groups (14%).

She said the tragic earthquake in Christchurch will inevitably have some impact on visitor arrivals in the short term, as it did in September 2010.

“We are working closely with our members and the wider tourism sector to help wherever we can. Members are also in close contact with each other, offering assistance, helping to find visitors alternative accommodation at short notice and offering temporary employment to staff.”

ENDS

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