Motels hit hardest by falling guest numbers

Wednesday 12th August 2009

Tourists are spending fewer nights in New Zealand motels amid as the slump in tourism continues to weigh on local accommodation. Still, hotels held up in the downturn, registering relatively smaller declines than other operators.

Total guest nights slumped a seasonally adjusted 8.9% to 2.5 million last month compared to May, and have sunk 4.6% from June 2008, according to Statistics New Zealand.

Motels and motor inns, which account for some 30% of all stays, had the worst month, falling 19% to 775,000 nights in June from the month prior, seasonally adjusted, amid a 4% decline from the same month a year earlier.

Still, hotels and resorts, which make up more than a third of the sector, fell 2.2% to a seasonally adjusted 871,000 nights month-on-month, and have slipped 2% year-on-year.

“The trend in total guest nights decreased over 2008 and has been flattening over recent months,” said Geoff Bascand, government statistician in an accompanying statement.

Spending by visitors to New Zealand fell 2.6% to $2.6 billion in the year ended June 30, according to Ministry of Tourism data out earlier this week, tracking closely with a 2.8% decline in tourist numbers over a similar period. Tourism has suffered from rising oil prices and increasing unemployment overseas which has sapped demand for international holiday destinations.

A resilient kiwi dollar has also made New Zealand less attractive, as visitors have less spending power than they have in previous years. Hostels and backpackers, which account for some 14% of all visitor accommodation, tumbled 12% to 357,000 guest nights in June from the previous month, seasonally adjusted, and have fallen 9.4% from the same period last year.

Campervan parks and camping grounds sank 16% to 463,000 guest nights last month from May, and have fallen 6.8% year-on-year. The average stay for guests was steady at 1.9 nights.

Businesswire.co.nz

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