Rotorua Hotels Coping Well Despite Slower Recovery

Rotorua Hotels Coping Well Despite Slower Than Expected Recovery

Rugby World Cup will provide a short term boost to Rotorua 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 Rotorua this afternoon, 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 nine Rotorua hotel members:

• achieved an annual occupancy rate of 66% which was well above the 2009 result of 59.6% but slightly below the national average of 69.4%.

• earned an average room rate of $105.40 down from $108.00 in 2009.

• generated over $47m in revenue from a total of 1119 rooms and employed over 620 people. They contributed $29m 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 $26m in 2009. Wages and salaries, and local council rates made up $15.1m and $938k 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 Korea and China. New Zealanders accounted for 46% of all rooms sold in Rotorua last year, followed by China at 12% up from 8.7% in 2009, then Australia on 11% and South Korea at 7% up from 4.6% in 2009.

Ms Langley said the return of the China and South Korea markets was welcomed in 2010 and had provided a significant boost to the Rotorua hotels’ occupancy levels, however this also impacted on the region’s average room rate as these markets traditionally yielded lower room rates.

Ms Langley said compared to other regions, Rotorua hotels predominantly relied on independent and leisure travellers (41% of rooms sold), followed by tours & groups (36%), then corporate guests (11%) and convention and incentive (9%).

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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