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New Zealand hotels hold steady on 2019 occupancy

Auckland saw a slight drop in occupancy in 2019, with more rooms coming online in 2020.

New Zealand has reported mixed results in its full-year assessment of hotel occupancy, with the national average remaining at 79% for a second consecutive year, according to new data released from Tourism Industry Aotearoa.

The majority of regions surveyed by TIA each year saw occupancy levels either hold steady or record a slight improvement, with the best result being a 2% improvement in Central Park, which covers the Taupo, Hawke’s Bay and Gisborne area.

Auckland saw a 1% decrease to 82%, the city’s poorest result in five years, with a drop in air capacity leading to fewer air crew room nights being utilised. Three-star hotels were the only market segment posting growth among occupancy levels for the year.

TIANZ Chief Executive, Chris Roberts.

TIA Chief Executive, Chris Roberts, said the figures reflected the end of a recent wave of strong results for the nation’s tourism industry.

“Along with flat occupancy, the average hotel rate was slightly down at the national level.

“The challenge will be compounded by new hotels that are due to open around the country, with more than 1,200 new rooms expected to become available in Auckland alone by the end of 2020.”

Roberts said the short-term outlook was relatively bleak, with no major events scheduled in New Zealand in 2020 and no improvement expected in hotel bottom lines expected potentially before the country hosts the America’s Cup yacht event and the APEC Summit in 2021.

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