Wednesday, January 21, 2009

Motels take a hit

Ooops! Not good news for the motel industry with November figures reflecting the month from Hell.

It is frustrating that the accommodation stats are 6-weeks behind, as we can only guess how December has shaped up and how January is now fearing.

Anecdotal evidence suggests to me that the crucial months of December and January will be "softer" compared to previous years and this does not bode well for motel businesses fortifying themselves for the winter months ahead.

It's a good time for moteliers to start getting friendly with the bank manager...

21 January 2009

Motels have been particularly hard hit by a drop in international visitor numbers that is having a significant impact on the country's accommodation sector.

Statistics New Zealand said today that motels collectively had 80,000 less "guest nights", a drop of 9 per cent, in November compared with the same month a year earlier.

Across the whole accommodation sector, the number of bookings was down 4 per cent, led by an 8 per cent drop in bookings from international visitors. A total of 2.7 million "guest nights" were spent in accommodation in November.

The drop in the motel figures, which equates to 80,000 less nights, represented two-thirds of the overall fall for the whole accommodation industry.

The fall off in business for the accommodation sector is widespread, with nine of the 12 regions reporting falls. Worst hit was Bay of Plenty with a 13 per cent fall, while the Wellington region fared best with a 2 per cent rise.

The occupancy rate of accommodation generally in November was 52 per cent, down from 56 per cent in November 2007. Hotels, with 62 per cent, had the highest occupancy rate.

According to Statistics New Zealand, short term visitor numbers to the country were down by 9500, or 4 per cent in November compared with the same month a year earlier.

Source: Click HERE

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