Revenue per available room (RevPAR) for major New Zealand hotels dropped by 11.5% in June compared to the previous year, returning to June 2019 levels, says Horwath HTL in its latest New Zealand Hotel Performance focus.
Referring to data reported by Hotel Data New Zealand (HDNZ), Horwath says occupancy fell to 58%, the lowest since July 2022 before New Zealand fully reopened its borders. The Average Daily Rate (ADR) decreased by 5.6% year-on-
year. Auckland and Wellington hotels experienced the most significant overall declines, with RevPAR dropping by 14.9% and 14.1%, respectively.
In Christchurch, RevPAR fell below 2023 levels for the first time this year, with a 5% decline in room nights soldand a 3% decline in the ADR. This includes a significant drop in conference-related business, which had been a strong contributor since the opening of Te Pae.
Hotels reported an 11% decline in rooms occupied by New Zealanders, who typically account for about three-quarters of total hotel occupancies at this time of year.
'While the lower average rate might be beneficial for consumers and economists, many hotels are cuttingpayroll and other costs to manage the reduced demand and avoid cash flow issues. ‘The decline in domestic demand was too significant to be offset by international visitors, though there weresome positive signs of recovery in international arrivals. Non-New Zealand resident arrivals increased by 2% year-on-year, reaching 88% of pre-Covid levels. Arrivals from China reached 86% of 2019 levels, while
those from Australia reached 90%.
‘Amid the focus on the recovery of international markets in the tourism sector, June serves as a strong reminder of the importance of the domestic economy for New Zealand hotels. It also highlights the need for more events and marketing of tourism product that attract bothdomestic and international visitors during the winter,’ the Horwath report says.
Source: Travelinc Memo