Positive Motel Survey Points to a Solid Start to Summer

Positive Motel Survey Points to a Solid Start to Summer

A positive tone to its August Mood Survey points to a solid start to summer for the tourism industry, the Motel Association of New Zealand (MANZ) says.

The survey of the Association’s 850 members saw the majority of respondents reporting expectations of growing or steady revenue over the coming six months, compared to the same period last year.

“Overall the survey shows that the motel sector is in good heart,” MANZ Chief Executive Michael Baines says. “Like many other small businesses motels have seen some lean times over the past several years, but indicators such as this survey give us confidence for the future.”

“However it’s important to note that many Motels have equally been faced with steadily rising costs over the past few years in the form of increased regulation, rates, insurance and the like. The ability to increase income is vital if this vital part of the accommodation sector is to remain viable,” Mr Baines says.

Winter has been a good season for moteliers, with more than half (57.7 per cent) reporting income higher than 2012 levels for May, June and July. Almost one third (29.6 per cent) said revenue had dipped for the period while 12.7 per cent said income was unchanged.

The Bay of Plenty and Taranaki were the standout regions in winter.

For the three months from August to October, almost half of motels (45.2 per cent) expect to see a growth in revenue compared to the same period of 2012. Of the remainder, 22.5 per cent are forecasting flat revenue while 32.3 per cent are expecting lower revenue.

Motels in Otago and the Bay of Islands are the most optimistic, while Hawke’s Bay motels are the most pessimistic, on the back of a weaker winter season.

When asked about the outlook for November to January, motel-owners were more cautious, with 43.7 per cent forecasting flat revenue compared to last year. However of the remaining respondents, optimists more than doubled pessimists, with 38 per cent predicting higher revenue against 18.3 per cent expecting lower revenue.

ENDS

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