New Zealand Hotels Register Record Occupancy Rates: Cricket World Cup Set To Bring More Business

New Zealand Hotels are celebrating a record year, buoyed by high occupancy rates and improved returns. Driven by spurting tourist arrivals, the 2014 results of hotel-members body-- the Tourism Industry Association New Zealand suggests fresh addition of dollars to New Zealand's economy under scaled up productivity improvements and increased investment, according to TIA Hotel Sector Manager Sally Attfield.

TIA's hotel sector represents 130 members throughout New Zealand, including international chains and privately owned hotels. In 2014, the TIA recorded hotel high occupancy rate at 76 percent, up by 3 points in 2013, the highest annual occupancy rate in 10 years. The Average Daily Rate was $144, up by $5, bringing Revenue per Available Room at $109, with an $8 improvement over 2013, the Scoop News reported.

"The 2014 hotel results reflect the improvement in New Zealand's economy and an increase in international visitor arrivals. Almost every region is seeing record results, with the exception of Christchurch, where a significant recovery in the supply of rooms is yet to catch up," Attfield said.

Profits Lagging

However, profits still lag behind the Australian hotel sector, and room rates will require a rise to encourage investment. Attfield said 76 percent occupancy in 2014 reflected an "improvement in New Zealand's economy and increase in international visitor arrivals during the year." She attributed the growth to strong marketing by Tourism New Zealand, the success of Hobbit films and recovery in global economy, according to Radio Nz. The high occupancy level has put New Zealand at par with Australian hotels, according to STR Global data.

Attfield said "Tourism 2025" strategy has a focus on hiking productivity across the industry, for better returns from existing investments and deployment of new capital. This will help the industry to achieve its aspirational goal of $41 billion in visitor expenditure by 2025. The TIA figures showed that New Zealanders comprised 50 percent of all hotel guests. Among international visitors, Chinese guests were ahead in numbers with the U.S. guest numbers returning to pre-Global Financial Crisis levels.

First Quarter in 2015

In the New Year, hoteliers are expecting a busy first quarter of 2015, with events like Cricket World Cup and Chinese New Year set to add more to the already busy peak season with strong arrival forecast. Attfield urged tourists to make early bookings to avoid regrets as some hot spots are already close to being sold out through January and February.

(The writer can be reached with feedback at kalyanaussie@gmail.com)