Buying your way into tourism

Tuesday, 5 April 2016, 11:56 am
Press Release: NZBizBuySell

http://info.scoop.co.nz/NZBizBuySell

Buying your way into tourism

Tourism has flown firmly into number one position as New Zealand’s prime industry – with no finish line in sight. Buying a business in the tourist sector can be a lucrative lifestyle option, attracting the sociable, savvy and adventurous. Opportunities abound in every niche.

Richard O’Brien, director of NZbizbuysell, a website hosting business listings nationwide, has been amongst the buzz of buying and selling tourism opportunities for 16 years. He believes it is an opportune time to reap the rewards of this burgeoning business sector.

“While a growth market is desirable when buying any business, tourism business buyers still need to exercise care ensuring the business has a future and will provide a return that will service any loans and support the lifestyle you want “ He says while there are some great opportunities, it is more tactical buying in today’s flourishing market compared to grabbing a bargain in a downturn.

“With an increase in airlines flying direct to New Zealand, such as Air China and American Airlines, tourist numbers are picked to keep growing. During the Chinese New Year period, Asian tourists flooded the hotel scene in Christchurch.” The once ghost town of empty beds is now a thing of the past. Tourism New Zealand cited a 34.4 percent increase in Chinese visitors last year.

The multifaceted face of tourism ranges from adventure activities through to luxury resorts such as Kingfisher Lodge in Northland, now on the market and poised for new owners to return it to its former glory.

He says when considering the purchase of an accommodation business, such as a boutique Bed and Breakfast, not only are you entering the real estate market, but possibly providing a family home, an income and lifestyle, while increasing future value. You can live in a location that you love and chose the length of the season you operate.

Having an entrepreneurial drive may tempt some to start out on their own, but O’Brien advises that finding a suitable established business is usually the best way to go as you can assess its; market, financials and offering to ensure it is profitable today and hopefully tomorrow, this takes the gamble out of the equation - not to mention saving invaluable time and having cashflow from day-one. There is a much higher success rate with a successful existing business. Established accommodation and adventure operations will usually have a sound financial history, new and returning customers as well as proven systems.

“Buying a business removes the risk, and you are investing in something with a track record, cashflow and profits. Someone else has invested the hard work into its establishment.”

Tourism operators have the security of knowing that industry partners such as Tourism Association New Zealand are working hard with initiatives to increase tourism numbers and spend into the next decade.

He says it is especially lucrative when a new owner brings to the table their energy, expertise and their own touch to improve upon what is already there. A change of service, how it operates, the marketing, décor, menu, additional services or any unique point of difference; all can help bring increased success. With social media, websites like Trip Advisor and booking mediums that include reviews with the listing, the word can quickly whizz around the globe about the latest best-kept secrets discovered in New Zealand.

“To be successful it helps if you have a passion for what you do, have a vision for the business and have the skills to run a business,” he says. Often the previous business owner will stay on a-bit to get you started or provide mentoring – so prior business experience is not always mandatory.”

“A good option is to visit some businesses that appeal and get a feel for them, their profitability and if you can see yourself running it.” Business brokers who work in conjunction with his website can also help match personalities to the available opportunities of which around 50 percent are tourism related.

Unlike a home, it is not generally made obvious that a business is for sale, as this confidentiality protects the business in order to maintain ongoing patronage. NZbizbuysell is one of the useful platforms available for people to peruse the market under one umbrella to see what exactly is out there. The diversity on offer is as varied as the country’s landscapes.

From the modest but bustling city-centre café to a remote high-end lodge, there is a slice of tourism pie for all on www.nzbizbuysell.co.nz

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