Hotel sector now hosts more guests

Now that we have the guest night statistics in for 2008 it is interesting to summarise what has been achieved last year.

It is pleasing that overseas visitors to New Zealand have only dropped less than 1% for the last 12-months ending December 2008 compared to the previous year. International guest nights were 42 percent of the total guest nights for all accommodation types in 2008.

For the 2008 year, total guest nights were 32.9 million, a similar total to the previous year.

(Click for larger view)

The trend in total guest nights has been decreasing since October 2007, after increasing since January 2006. The trend level is now 4 percent lower than the peak in October 2007, but is still 3 percent higher than the previous low point in January 2006.

Although guest nights were largely maintained, the biggest concern for the motel industry has been how guest nights were distributed amongst the different accommodation types.

Of note, the Hotel sector has now overtaken the Motel sector by hosting more guest nights in 2008.

For the 2008 year, Hotels have recorded the largest share of total guest nights (33 percent). Disappointingly, Motels have been now relegated to second place (32 percent).

Hotels have recorded the largest guest night increase, up 383,000 (4 percent) followed by caravan parks/camping grounds, up 60,000 (1 percent).

Motels have recorded the largest decrease in guest nights, down 448,000 (4 percent).

It is easy for the Motel industry to use the tough economic times as an apology for a less than perfect performance in 2008.

It would appear that other accommodation sectors are becoming smarter and eating into our market share.

How can the Motel sector get that sexy back?