17.11.2008 Whangarei Northern Adocate
by André Hueber
Northland's second-biggest earner is in trouble as plunging tourism numbers threaten the industry.
Ministry of Tourism figures show numbers of "guest nights" in Northland plummeted 9.5 per cent in September, compared with a year earlier. But a low dollar and the prospect of luring Kiwi travellers - especially Aucklanders - to the North has left tourism leaders hoping for a reversal of the trend.
Destination Northland boss Robyn Bolton said Tourism NZ predictions pointed to 2009 being even tougher than this year.
But while Northland was likely to suffer a drop in international visitors this summer, Kiwis hit by the economic downturn might choose to holiday at home.
"Northland is close to New Zealand's biggest population base with Auckland and upper North Island right on our doorstep. The Northland tourism industry must maintain its focus on the domestic market, which has the potential to help in these difficult times."
Tourism is Northland's second-biggest earner behind pastoral farming, generating about $750million each year. The industry employs roughly one in 10 people, having a trickle-down effect on the whole region.
Bay of Islands Motel Association head Heather Galloway, who owns Paihia's Dolphin Motel, said bookings were slow for the time of year and most of the association's members were struggling. Some businesses were dropping prices to entice visitors but that left other operators with empty beds, she said.
Ms Galloway said her figures for international travellers were down by 50 per cent on last year."From January we rely on overseas travellers but we've already had three groups from overseas cancel their bookings in the last three months as a result of the economy."
Another threat was the increasing number of private homes being rented out. "Homestays are killing the industry. Lots of new ones are opening up and they tend to have cheaper rates per night, especially for larger groups or families."
Copthorne Hotel Waitangi manager Gavin Fletcher said his bookings were down 10 to 15 per cent on last year. "The drop is predominantly international. New Zealand markets are still quite buoyant - for Kiwis, a trip to Northland is cheaper than a trip overseas. We're also trying to source new business from Australia. We see it as an opportunity because of its proximity and closeness to the New Zealand dollar." He said times were tough but the industry would pick up again.
John Lewis, guest relations manager of the Kauri Cliffs resort at Matauri Bay, , said the luxury market was affected just as much. Bookings at the five-star resort were down 15 per cent but the international financial crisis wasn't the only thing to blame. "New Zealand has had an exceptionally good run in the past two years. Things are bad, but you have to put it all in perspective - 80 per cent of our customers come from North America and a business-class fare costs $12,500 per person. That's a lot of money on flights before you even start booking lodges."
He said many Americans had been waiting until after their elections to get a clearer idea of where the world economy was heading. "New Zealand is still perceived as a safe destination and our low dollar is a great selling point." Mr Lewis was pleased Prime Minister-elect John Key had put his hand up for the role of Tourism Minister. "Tourism has had virtually nothing spent on it while Labour was in power. I think John Key understands the importance of tourism to New Zealand. It's promising to the industry."
Simon Jones, general manager of Carrington Resort on the Karikari Peninsula, agreed: "With the strong arm John Key has, I hope New Zealand tourism will get a bigger push than it's had in the past." While international visitor numbers at the resort were down, the drop had been made up for by Aucklanders holidaying in Northland instead of across the Tasman.
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