Queenstown Hotels Coping Well Despite Slower Recovery

Queenstown Hotels Coping Well Despite Slower Than Expected Recovery

Rugby World Cup visitors stopping off in Queenstown during the tournament will provide a short term boost to 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 Queenstown 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 19 Queenstown hotel members:

• Achieved the third highest annual occupancy of all NZHC members of 69.4%, up from 63% in 2009, and on par with the national annual average

• Were fourth out of eight regions for average room rate (ARR) at $133.30

• Generated over $104m in revenue from a total of 2298 rooms and employed over 1700 people. They contributed $63.7m 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. Wages and salaries, and local council rates made up $31.9m and $1.5k 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 32% of all rooms sold in the Queenstown region last year, followed by Australians at 30%.

Ms Langley said Queenstown hotels were largely dependent on independent and leisure travellers (54% of rooms sold), followed by tours and groups (34%).

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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