NZHerald Article: Visitor boom pushes hotel room rates up
More good news from the hotel industry as visitors can't get enough of hotel hospitality. It will be interesting to see whats to come in 2016 after enjoying a record-breaking year in 2015. Check out what the NZ Herald has to say about this.
Hotel room rates in New Zealand went up nearly 8 per cent last year contributing to a bumper year for hoteliers. Hotels enjoyed a record-breaking year in 2015, increasing yield and productivity, according to latest Tourism Industry Association statistics. The association's hotel sector members recorded a national average occupancy rate of 79 per cent up 3 points on 2014 and the highest level in at least five years. Association chief executive Chris Roberts said returns were also improving, which is needed to encourage investment and refurbishment.
The average room rate across all star grades was $157 (up $12 on 2014). Combined with the improved occupancy rate, this pushed the average revenue per available room (RevPar) up by $14 or 13 per cent to $124. "Hotel revenues in New Zealand are still below what is being achieved in Australia and high land and construction costs in New Zealand remain a barrier. But the upward trend is encouraging," Roberts said.
TIA has identified infrastructure investment as a priority and is working with the government to identify opportunities and remove roadblocks.