New Zealand market slowing

Horwath HTL released a report examining the future of New Zealand’s tourism and hospitality sectors




Key Points:

  • Chinese arrivals for the year are likely to fall from 11% to 3%

  • RevPAR was down 3%

  • 17 hotels with 2,158 rooms are scheduled to open during 2020


Horwath HTL released a report examining the future of New Zealand’s tourism and hospitality sectors.


While there is still strength, the report warned of falling visitor numbers, making the outlook for further improvement in 2019 and beyond uncertain, particularly when it comes to the rate of future growth.


This year has seen a slower rate of growth in international arrivals compared to recent years and Horwath noted the visitor arrival forecast for the full calendar year is approximately 40% lower than the previous year’s forecast.


Chinese arrivals for the year are likely to fall from 11% to 3% with the first three months of 2019 already showing a 0.8% decrease. Horwath noted Chinese arrivals into Australia were up 2.4% for the same period.


Slowing arrivals are being met with an increase in hotel room supply. Horwath said data from member hotels in the Tourism Industry Aotearoa showed occupancy at 78% year to date in April, down from 82% in the previous year. The average daily rate was $176 for the year ending in April, down from $191 the preceding year. Auckland and Christchurch paced the declines. RevPAR was down 3% during that time.


By the end of this year, nine hotels with a total of 947 rooms will have opened in New Zealand’s main visitor hubs. A further 17 hotels with 2,158 rooms are scheduled to open during 2020.

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