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Central Park Hotels Coping Well Despite Slower Recovery

Central Park Hotels Coping Well Despite Slower Than Expected Recovery

Rugby World Cup visitors stopping off in the Central Park regions will provide a short term boost to hotels after a slower than expected economic recovery over the past two years.

Speaking at NZ Hotel Council’s 2010 Annual Operating Survey presentation in Rotorua this afternoon, NZHC Independent Chair Jennie Langley said hotels throughout the country were constantly adjusting to meet the needs of fewer travellers from traditional long haul markets, increased visitors from Asian countries, guests booking at the last minute and almost everyone looking for deals.

In 2010 NZHC’s seven Central Park* hotel members:

• Achieved an annual occupancy rate of 51.4% compared to the national average of 69.4%.

• were first out of eight regions with an average room rate (ARR) of $144.70, up from $140.50 in 2009.

• generated over $34m in revenue from a total of 714 rooms and employed over 520 people. They contributed $21.8m to the region through wages and salaries, food and beverage purchases, sales and marketing costs, room expenses such as laundry, electricity charges, rates and other expenditure. Wages and salaries, and local council rates made up $11.7m and $581k respectively of this total.

Nationwide, the 2010 annual survey highlighted the slowing down of numbers from traditional markets such as the UK and United States, the continued importance of Australian visitors, and the return of the Asian markets, particularly South Korea and China. New Zealanders accounted for 76% of all rooms sold in the Central Park region last year, followed by Australians at 7%.

Ms Langley said Central Park hotels were largely dependent on independent and leisure travellers (55% of rooms sold), followed by convention and incentive (19%), then corporate (13%), followed closely by tours and groups (11%).

“These portfolios have remained relatively unchanged percentage wise since 2009, which is good as it means that there is no one visitor segment that the region is heavily reliant on.”

She said the tragic earthquake in Christchurch will inevitably have some impact on visitor arrivals in the short term, as it did in September 2010.

“We are working closely with our members and the wider tourism sector to help wherever we can. Members are also in close contact with each other, offering assistance, helping to find visitors alternative accommodation at short notice and offering temporary employment to staff.”


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