Most motel operators dread entering the quieter winter months and it looks like April's trade hasn't provided any positive signs to alleviate fears.
Overall, total guest nights in April 2010 were up 1 percent compared with April 2009. In isolation, this is positive news with the first four months of the year all recording increases in guest nights.
The South Island continues to out perform the North Island by achieving a 4 percent gain in guest nights, compared to the North Island's 1 percent decrease.
Four of the 12 regions recorded more guest nights in April 2010 than in April 2009. The regions showing the largest increases were:
- Otago, up 8 percent
- Auckland, up 6 percent
- Canterbury, up 4 percent
- Southland, 4 percent.
The regions showing decreases were:
- Waikato, down 8 percent
- Wellington, down 7 percent.
International visitor guest nights in April 2010 increased by 2 percent compared with April 2009.
Domestic guest nights increased by less than 1 percent in April 2010 compared with April 2009.
Probably the most telling of statistic in April's accommodation survey was the significant movement of guest night distribution with hotels scalping trade from all other sectors:
- Hotels, up 7 percent
- Backpackers, down 5 percent
- Holiday parks, down 2 percent
- Motels, down 1 percent.
In April 2010, hotels had the largest share of total guest nights (34 percent), followed by motels (32 percent).
Excluding holiday parks, the occupancy rate in April 2010 was 50 percent, compared with 51 percent in April 2009.
Motel operators need to console themselves with a long term optimistic view with the common catchphrase: "just one last tough winter."
While many motel operators will be focusing on getting through over the cooler months, there is a burning question that remains unaddressed. The hotel sector continues to take market share from the motel sector - Why is that?
Source: Click HERE
