Room rates climb in Queenstown, Christchurch and Rotorua amid tourism recovery
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Tourist hotspots are seeing a rise in hotel room rates with international visitor numbers back to 86 percent of pre-Covid levels.
Data from Hotel Data NZ says overall room rates were up in Queenstown, Christchurch and Rotorua, with a 6.5 percent increase to $239 for rooms available in Queenstown for the year ending 31 March.
Room rates in Christchurch were up 5 percent and 3 percent in Rotorua, though rates were down 10 percent in the main centres of Auckland and Wellington, in the year to 31 March.
Colliers International director Derrek Anderson said rates were falling in Auckland and the capital for different reasons.
"In Auckland there is an increased supply of hotel rooms that has impacted the numbers, while the city would benefit from a greater number of major events," he said.
"Next year's opening of the New Zealand International Convention Centre (NZICC) looks promising for the city and projections from the NZICC suggest the facility will attract 33,000 new international visitors to New Zealand, which equates to 101,000 additional visitor nights."
He said Wellington continued to struggle in the wake of cutbacks in government spending.
"In Wellington, occupancy and average daily rates are down due to the central government's reduction in spending but we do not see this as a long-term shift and expect demand to bounce back in line with the broader New Zealand economy."
Anderson said buying interest in hotels from investors was already bounding back.
"As the official cash rate continues to drop in New Zealand we expect that will boost transaction numbers, despite the backdrop of geopolitical uncertainty that investors are currently navigating.
"The recent sale of the InterContinental Auckland to an offshore purchaser underscores the long-term prospects of the New Zealand market as we move forward in our economic recovery."
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