2014 was a stellar year for New Zealand’s hotels which collectively recorded the highest annual occupancy rate in five years, according to new Tourism Industry Association New Zealand (TIA) research.
The almost 140 TIA member hotels in New Zealand enjoyed 75.7% occupancy, up 3 points on 2013, TIA Chief Executive Chris Roberts says. This was the country’s highest occupancy rate in five years.
The average daily rate (across all star grades) jumped to $144, up $5 on the previous year, generating total revenue of $1.05 billion.
The strong performance is a result of improvements in the New Zealand economy and an increase in international visitor arrivals. New Zealand welcomed more than 2.8 million visitors in 2014, which was 5.1% more than in 2013, Mr Roberts says.
“Almost every region saw record results last year, with the exception of Christchurch where a significant recovery in the supply of available rooms due to hotel openings and re-openings has affected the occupancy statistics,” Mr Roberts says.
“These positive trends have continued in 2015 and as a result, we are seeing reinvestment with a number of hotels undergoing refurbishment. And investors are responding to demand with more hotel developments around the country than we have seen for quite some time.”
With demand for hotel rooms expected to keep growing as the tourism industry progresses towards its Tourism 2025 goal of almost doubling total tourism revenue to $41 billion, there needs to be ongoing and significant investment into both existing and new hotels, Mr Roberts says.
Highlights from the TIA Hotels Annual Operating Survey 2014:
- The national annual occupancy rate was 75.7%, up 3 points on 2013, and the highest in the last five years. Auckland achieved the highest annual occupancy rate of 82.2%, followed by Wellington (74.6%) and Dunedin (73.6%).
- The national average daily rate across all star grades was $144, up $5 on 2013, and the highest since 2011 when New Zealand hosted the Rugby World Cup. The Central Park region (Taupo, Tongariro, Napier and Gisborne) had the highest average room rate of $160, followed by Christchurch ($157) and Queenstown ($149).
- Total room capacity was up 500, to 17,900, with most of the increase in Christchurch.
- TIA hotel members generated $1.05 billion in revenue. They contributed $774 million to the economy through wages and salaries, food and beverage purchases, council rates and other expenditure.
- TIA hotels employ 10,500 full-time equivalents, up from 9800 in 2013. They pay more than $345 million in wages and salaries, and almost $19 million in council rates.
TIA Hotel Sector
TIA’s hotel sector represents the interests of almost 140 members throughout New Zealand, including international chain, large independent and privately owned hotels. TIA hotel sector members employ 10,500 staff nationally, with annual revenues of more than $1.05 billion.
TIA’s hotel members contribute to a monthly performance survey conducted by The Fresh Information Company.