Friday 31st January 2003 |
Text too small? |
As an industry, tourism is growing strongly and it seems logical to assume that hotels and accommodation providers would be part of the boom. Indeed, Statistics New Zealand reports a healthy 22% increase in "guest nights" since 1999.
However, occupancy rates have been generally flat, averaging a steady 50% over the past three years. Room rates and yields have remained stagnant and even shrunk since the mid-1990s. Hospitality Association CEO Bruce Robertson explains the situation saying, "Development of new properties has been outstripping demand."
While the rapidly growing capacity is tough for companies in the industry, it's good for tourism. Twenty-five-year hotel industry veteran Jeff Shearer, general manager of the Heritage Hotel in Auckland, says "something akin to the food and beverage industry has been happening. Hotels have been becoming a lot more diverse and of a higher standard."
In New River's investigation of the sector, firms leading the diversity and raising of standards emerged as the best performers amid tough competition. They're not confined to a single market sector or geographic area. These high performers are from different parts of the country and range from luxury hotels to holiday parks.
No comments yet
Fonterra appoints permanent COO
Manawa Energy FY24 Annual Results & Webcast Details
Seeka Provides the Results of Meeting - ASM
April 19th Morning Report
PGW Guidance Update
CNU - Commerce Commission releases draft expenditure decision
Spark announces departure of Product Director
TGG - T&G appoints new Director
April 18th Morning Report
SKC - APPOINTMENT OF CHIEF EXECUTIVE OFFICER