High occupancy rates pressuring supply

High occupancy rates pressuring supply

New Zealand’s accommodation market is thriving, with Godzone’s top 20 destinations reporting a 5% increase in accommodation rates per night in 2017, and high occupancy continuing to put pressure on supply across the board.

Some of the largest increases were seen in Napier – rising 14% from $159 to $181 – Lake Tekapo ($254), Tauranga ($187) and Picton ($153).

And, despite a whopping 27% increase in price over the last three years, Auckland once again topped the popularity charts for international travellers.

Increases in rates were the flavour of the year, with a huge 80% of the top 20 NZ destinations increasing the average accommodation price in 2017.

Of the top 50 most popular destinations, international travellers threw down the most cash in Waiheke Island, paying $323 per night on the vine-friendly island compared to $295 in 2016. The second-highest room rate was in Mount Cook, where adventure-hungry tourists paid $292 per night, an 33% increase on 2016. Queenstown ($284) and Arrowtown ($276) closely followed.

Meanwhile, visitors looking to explore beyond the major cities got more bang for their buck in Wanganui ($119, up 2% from 2016), National Park Village ($120, down 4%), Westport ($127, down 3%) and Waitomo Caves ($133, up 6%).