NZ guest nights rise at fastest pace in 2 years on boost from domestic, international travellers

Friday 10th July 2015

New Zealand guest nights rose in May at their fastest pace in two years, fuelled by a rebound in both domestic and international travelers and a lift in South Island and hotel park stays.

Seasonally adjusted guest nights advanced 2.6 percent in May from April, the fastest pace since May 2013's 8.4 percent gain and snapping the previous month's 0.6 percent decline, according to Statistics New Zealand. Stays in holiday parks jumped 5.2 percent, while backpacker nights climbed 3.4 percent, motels advanced 2.2 percent and hotel stays rose 1.3 percent.

Domestic guests increased 2.6 percent in the month, from a drop of 0.3 percent the previous month, while international guests rose 3 percent from the previous month's 0.1 percent fall. Guest nights in the North Island rose for the fourth consecutive month up 2.4 percent, while South Island stays increased 3.3 percent, snapping April's 0.6 percent decline.

On an annual basis, national guest nights in May climbed 5.5 percent compared to the same month a year earlier, the agency said. That was due to increased South Island guest nights, which were up 8.5 percent in May from a year earlier, and a 3.9 percent gain in North Island guest nights. International stays rose 12 percent, the biggest gain since May 2013, and domestic guest nights increased at a more modest 2.3 percent.

"As in the previous three months, most of the rise for May was from international guest nights," business indicators Neil Kelly said. "Two thirds of the increase in international guest nights occurred in the South Island."

Total capacity in short term accommodation rose 0.1 percent in May compared to the same month the previous year, snapping eight months of declines. Occupancy rate increased to 34.3 percent from 32.8 percent in the same month a year earlier.

BusinessDesk.co.nz

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