Roarprawn

Busted Blonde has graciously added us to her blog, Roarprawn.








"Roarprawn is about keeping a watch for any evidence of corruption in our political sphere and just so it doesn't get too boring, it's also about other news that takes our fancy or irks us.We also have more than a passing interest in eating and drinking - especially seafood and wine.And we will never forget that the Scampi scandal still needs to be sorted. BB."

To check out the Roarprawn blog: click HERE

Mixed feelings on bail-out for capital

In the story below, individual moteliers have been sought out to comment on the prospect of higher rates bills to pay for facilities based in central Wellington and the introduction of user charges at the door for non-Wellington City residents.

This commentary is interesting and significant as debating funding options for local government will be repeated in a similar vein in other areas throughout New Zealand.

Local councils are full of ex-school teachers, career administrators and socialist do-gooders that have little understanding of running a business. Unfortunately they mistakenly view accommodation businesses as major beneficiaries of ratepayer subsidised events, attractions and sports facilities based on on flawed economic multiplier assumptions. Accordingly motels are often grouped together with other "tourism" businesses that attract targeted rates.

The motel industry has a vested interest in the efficient operations of local government and needs to have a voice.

What should the motel industry be saying?

An underlying message that should be communicated to all councils is that a strong private business sector will underpin and sustain the general welfare of communities. In order to achieve this, councils should focus on minimising rates and regulatory burden.

Councils should only fund genuine public goods and services, facilitating the efficient provision of necessary infrastructure.

Councils should exit from all non-core activities.

Councils should be making a concerted effort to reduce business rate differentials.

The case for councils subsidising events, attractions and sports facilities must be supported by rigorous economic analysis that clearly demonstrates net benefits for ratepayers.

There should be a concerted effort by councils to move funding of ‘club’ goods, such as swimming pools, recreation centres, libraries, museums, zoos etc to user charges.

SIMON EDWARDS
Hutt News
13 January 2009

The prospect of higher rates bills to pay for facilities based in the capital, or extra charges at the door for non-Wellington City residents, is not a prospect that Hutt locals are likely to greet with any enthusiasm.

It might be supposed that Hutt City accommodation providers would be more open to the idea that we could shoulder a bigger share of costs of the International Festival of the Arts, Te Papa, the zoo, etc., if those entities are cash-strapped (or WCC threatens a funding cut). But calls by the Hutt News last week indicate any move to initiate extra charges faces as much of a battle with motel/hotel operators as can be expected from any other resident or ratepayer.

Camellia Court Motel operator John McLaughlan, a former president of the Motel Association, says Wellington's bed capacity has more than doubled in the last decade. The days when Hutt accommodation providers gained good "overflow" from visitor numbers the capital couldn't handle have gone. "It's minimal (now); nowhere near what it used to be."

The people staying at Hutt motels and hotels are mostly here for business or family reasons. Sure, they might tack on day trips to visit Te Papa, the zoo and the like in Wellington but the capital's attractions are of "little benefit" in terms of gaining local motels/hotels more business.

Nevertheless, Mr McLaughlan was somewhat scathing of the Hutt Valley mayors' "huffing and puffing" over the idea of a levy or door charges even being raised. The threat to cut off water supply reminded him of the "old England versus Scotland stuff".

The stadium is being paid off via regional rates. Mr McLaughlan could see nothing wrong with charges of a dollar or two to get into the likes of Te Papa if there is a genuine funding shortfall. "After all, even when you pick up someone from the airport, you pay."

A duty manager at The Angus Inn said the hotel gets a lot of people staying there who visit Te Papa and other Wellington attractions, including Japanese students and tourist groups. But she declined to venture an opinion on whether the Hutt and outlying cities should pay more.

Dave Sorenson, at Green Gables, agrees Te Papa is a popular destination for people staying at his motel. He wasn't so sure many went to listen to the orchestra though. He too noted all of the region pays a substantial amount towards the stadium.

What he resents about Wellington seeking more money for such facilities is that the city "wastes" so much money already. "Some of their ideas are just loopy; the (Basin Reserve) flyover is just one of them." Mr Sorenson said it's one of the reasons he's dead-set against talk of amalgamation.

As well as owning Lowry Bay Homestay, Pam and Forde Clarke run a nationwide booking service for bed & breakfast accommodation. Pam says tourists who stay with them at Lowry Bay (perhaps 70% of their clientele) do visit the attractions in Wellington City. Others are here for weddings or family reasons and may also get into town.

She sees nothing wrong with charges to get into the likes of Te Papa if funding is tight. A $5 or $10 charge would still be significantly less than what it costs to visit such facilities in the UK.

Forde says rather than knee-jerk reactions, the region's authorities should sit around a table for a reasoned discussion on the issues. Wellington City has invested massively in the tourism/visitor/events industry and outlying districts piggyback "a bit unfairly" on the "fantastic reputation" that has been built up. But extra charges at the door for taxpayer facilities like Te Papa, or charges that vary according to local ratepayer status, "could be an administrative nightmare," Mr Clarke says.

"All this needs to be debated. It's a good topic for public discussion."

Source: Click HERE

Calls to keep hotel prices from falling

Hospitality Association chief executive Bruce Robertson issued a clarion call back in November for operators not to flinch by reducing tariff during times of economic adversity (see our post HERE).

The New Zealand Hotel Council and Tourism Queenstown chime in with a simalar message in the article below.

All accommodation operators in Queenstown are feeling the pain as hotels and apartments dump distressed stock on dwindling visitor numbers.

Otago Daily Times
By James Beech
14 Jan 2009

Destination Queenstown and Lakes District members of the New Zealand Hotel Council have backed the Hospitality Association of New Zealand's calls for operators not to slash prices in the wake of a decline in room occupancies.

Destination Queenstown said occupancy levels were down 10% to 15% from last year, based on unofficial feedback from DQ members.

Levels varied between types of product and accommodation provider.

However, occupancy after the traditional summer peak season was of equal, if not more, concern to operators, acting chief executive Graham Budd said.

He said Destination Queenstown would agree with Hospitality Association chief executive Bruce Robertson when he urged the industry "not to panic, to keep calm, and to resist the urge to discount prices".

Mr Budd said price wars were good for holidaymakers but not for operators' yields.

"Undercutting would lower price points and drag the industry down to a new lower benchmark in the mind of the consumer.

"It would be extremely hard to increase prices once economic times improve."

There is six-week lag on official data from commercial accommodation monitor surveys, via the Ministry of Tourism.

In the meantime, Mr Budd said DQ relied on anecdotal evidence but feedback had been minimal so far, "because even if it's quiet, it's the busy time of year".

Hotel Council regional chairwoman Victoria Shaw said its 17 members in Queenstown and Wanaka would meet again in February after the festive peak.

Christmas and New Year bookings were on par with last year and were "nothing to panic about", she said.

"I think there's been a lot of last-minute bookings that have filled in the gaps from all of our usual markets.

"At this stage, forward bookings aren't as strong as what they usually would be, but the whole booking pattern has changed over the past few months [and] I don't think we can predict what will happen."

Ms Shaw said visitors had held off booking holidays until they could see what effect the economic downturn would have on them, but people were at that stage now and holidays were still wanted.

Airlines were offering good deals and the Internet enabled tourists to shop around and make instant decisions.

"When the economy recovers and you want to put your room rates up, it's going to be harder because people will have a perception of the value of the rooms.

"We definitely need to hold our rates and if people are considering cutting costs, they need to be careful how they do that. We need to maintain the standards of service in Queenstown.

"That's what we've built our reputation on."

Mr Robertson said declines in occupancy rates meant many in the sector were increasingly concerned about managing the quieter April-to-winter period and beyond.

Encouraging domestic tourists to explore the country was one way to alleviate pressure on the tourism industry, he said.

However, while international flights and visitor figures were up, Queenstown Airport Corporation reported domestic passenger numbers were down slightly to 312,733, a 2.7% decrease despite a 3.7% increase in flights, over the last six months of 2008 compared to the same period in 2007.

Source: Click HERE

Staying home for summer proving popular with kiwis

In our post HERE, we asked the question: Where are the NZ traditional families spending their holidays? Anecdotal evidence suggests to us that not as many family groups are staying in motel accommodation this holiday season compared to previous years.

Holiday Parks Association chief executive Fergus Brown, has inferred that families have purchased a cheap tent from the Warehouse and have gone camping. We think Fergus may be on to something here...

We look forward to comparing the commercial accommodation guest night stats when they are released!

09 January 2009
Newstalk ZB

Holiday makers seem to be staying close to home this summer.

Holiday Parks Association chief executive Fergus Brown says people appear to be enjoying domestic breaks with their families instead of heading overseas. He says parks have been really busy this season, which may ion part be due to the great weather and cheaper petrol.

Mr Brown says these days it is also cheaper to buy a tent and camping equipment, but parks also offer cabins and motel units if people want a bit more comfort.

Mr Brown says January is the biggest month for domestic holiday makers. He says those visitor numbers will fall off over the next two months, but they will be replaced by tourists from overseas.

Fergus Brown says visitor numbers from Australia are still high, while numbers from the UK and US have dropped off.

Source: Click HERE

Injunction allows police to watch cameras in ‘hot sheet motel’

Just to clarify - Houston is in America NOT in Russia.

Gotta love that term "Hot sheet motel"

January 12 2009
11 News
By Lee McGuire

HOUSTON -- The City of Houston has won an injunction against a "hot sheet motel." A spokesman for Mayor Bill White says he expects this is the first of many.

After an injunction issued Friday, the owner of the El Rondo Lodge in Sunnyside has agreed to stop renting rooms by the hour.

Police say young women living nearby complained they had routinely been propositioned for sex. City of Houston attorneys were able to take legal action against the hotel’s operator under the city’s nuisance laws.
To comply with the injunction, the motel will also have to install surveillance cameras in the lobby and in parking lot -- so police can see who is checking in, in real-time.

In addition, guests will have to present government-issued photo ID before entering the building.

Source: Click HERE

Check out the El Rondo Lodge in Google Street View - nice!!

View Larger Map

Travel Web Stats

From the AA's January Advertiser Newsletter, the following graph plots monthly domestic web traffic sessions for travel competitors to December 2008:

Click for a larger version

Source: Click HERE

Tosser of the week

All Black Sione Lauaki and his girlfriend went out on New Years, got trashed and decided to check into the Greenlane Motor Inn Auckland on their way home at 5.50am.

A wise old Auckland motelier once told me that they never turned their "No Vacancy" sign off before 10am in order to defer intoxicated reavellers from checking in after a night out. I guess this is necessary when there are idiots like Lauaki lurking about in the early hours.

It will be interesting to find out what the consequences for Lauaki will be. The judicial system will be moistening a wet bus ticket in preparation...

January 11 2009
www.theage.com.au
All Black trashed motel room, court told

All Black Sione Lauaki is in trouble again - this time for property damage.

Lauaki appeared in court charged with trashing property at an Auckland motel early on New Year's Day, the Herald reported on Sunday.

He appeared at the Auckland District Court on New Year's Day, charged with intentionally damaging three windows and a television at the Greenlane Motor Inn, opposite Auckland's Ellerslie Racecourse.

Lauaki and a female companion believed to be his girlfriend arrived at the motel at 5.50am (03.30 AEDT) and paid for a ground-floor unit. Soon after staff heard raised voices and windows being smashed.
After the pair had been in the room for just five minutes, the motel owner called police and the couple was taken away in separate vehicles to the police station.

It is believed Lauaki lost his temper when his girlfriend said she wanted to leave him.

Lauaki last week paid the $NZ700 ($A585) repair bill.

His lawyer had applied for diversion, but it was unlikely to be granted if he admitted a second offence. In February 2006, Lauaki was offered police diversion after admitting assaulting a security officer in the North Island city of Hamilton.

The 27-year-old Chiefs loose forward, who made his international debut in 2005, is at least the 11th All Black to appear in criminal court in the past five years.

Source: Click HERE

Motella's Predictions for 2009

There is no doubt that this year is going to be challenging. You know a condition is serious when it is given an acronym - in this case: GFC - the Global Financial Crisis!

We have seen this cycle happen before and we predict that it will be a difficult winter; however as New Zealand exits the depths of the winter-blues, we believe that the economy will improve in time for the 2009 summer season.

Motels that are well located, have reinvested, offer a good quality product and friendly, professional service will always do well. Others will struggle, but it will not be as bad as the naysayers' predict.

Here are our 16 predictions for 2009:

1. Some Travel Agencies will go bust. New Zealand high street travel agencies have had a period of upheaval and consolidation over the last few years. Overseas travel has always been the most lucrative for travel agencies, however there are signs that this source of revenue will decline as Kiwis defer overseas holidays. The Internet will continue to bypass traditional travel agencies and will be used with greater gusto by consumers to sniff out deals. There has been some recent growth in domestic corporate business, however clipping the ticket on domestic travel has always been high maintenance with low returns. It will be difficult for travel agencies to sustain profitability with the decline of higher yielding overseas travel and their increasing reliance on domestic corporate travel. Moteliers should be vigilant in managing credit control with travel agencies and only deal with those that are bonded with TAANZ.
2. Some airlines will go bust. The profitability of many airlines has always been questionable. Expect to see more casualties of offshore based airline companies with consequences that may ripple over to New Zealand.
3. Some motels will go bust. Sadly there will be a few casualties in the motel industry in 2009. The lack of re-investment and focus on quality will finally catch up with some leased motel businesses.
   
4. Environmentalism. The Tourism Industry and environmentalism appear to have been on a collision course for some time. 2009 will be the year that Tourism Trade Associations will need to make a stand and choose between environmental rhetoric or the economic sustainability of the small businesses they represent. The threat of an imposition of green taxation and compliance for all businesses will continue in 2009.
5. 100% Pure NZ. Expect to see a "freshening and reinvigorating" of the brand. There will be a subtle move away from reliance on solely marketing natural landscapes.
   
6. Qualmark NZ Ltd. Expect some fireworks as Qualmark attempts to re-qualify its compulsive environmental conditions embedded into its quality benchmarking system in the Serviced and Self Contained sector. Qualmark will allow the Motel Association of NZ (MANZ) token lip service; however will proceed as planned with their predetermined Dark Green Agenda.
7. Ministry of Tourism. A review of services will identify duplication in services provided by Tourism NZ, Ministry of Foreign Affairs and Trade, and New Zealand Trade and Enterprise. Expect these entities to be tweaked and some services amalgamated.
   
8. Tourism NZ will need to qualify its expenditure line by line alongside other government entities. Individual marketing campaigns, staffing levels and overseas offices will need to demonstrate an acceptable ROI to the New Zealand taxpayer. Expect some reshuffling of roles and budgets. Also expect a nil or at best a token increase in the tourism budget.
   
9. Domestic travel growth. People will still travel in 2009. There is an opportunity to build on the AA's domestic tourism campaign as consumers seek domestic deals and shorter trips to enable them to enjoy the travel and breaks without the long-haul price tag. Commercial travel will be static in 2009, as most companies realise that they must continue putting reps on the road to maintain sales. Motels may become more favourable to corporate travellers as they are perceived to offer more value than hotels.
   
10. Local Government. Moteliers that have faced the brunt of local rate increases will be following closely further reviews on the performance of local government. These findings will qualify rationalisation of council operations and the introduction of private enterprise.
    
11. Bed Tax. This bogey will not die and will be raised from "left field" again this year.
12. Consolidation in the online travel industry will continue. Smaller under performing players in the market place will be swallowed up at never to be repeated bargain prices.
13. 2009 will not be the year of mobile for the travel industry: The hype will not live up to expectation. The introduction of mobile travel sites will be delayed due to opportunity costs. For the consumer it takes too many clicks for browsing and making an on-line purchase. Maybe we will have to wait to at least 2010 for any significant movement here.
14. The return of the last minute model. The last minute model of selling inventory online seemed to plateau in 2008. This methodology will make a comeback in 2009 lead by demand from hotels and apartments that will be dumping distressed inventory.
15. The rise of online reservations. In spite of guest nights remaining largely static over 2009, online reservations will continue to rise.
    
16. The rise of Social Media Social Media will slowly evolve into a more mainstream method of marketing for the accommodation industry.

Have we missed anything out?

How's trade?

Where are the traditional NZ family spending their holidays?

In talking to a few "Motellas" around the traps it would appear that demand isn't as intense as it has been in previous years.

There seems to be a definite change in the mix of people traveling at the moment. We have been hosting an increase of comfortable retirees, Gen Y couples, overseas family and couples visiting, newly immigrated families and couples, and a few one-off stays from couples and families that are not so well off - but are treating themselves.

We have found that the traditional middle class family group of Mum, Dad and 2-kids have been conspicuous by their absence. New Zealand's new beneficiaries, the middle-class "Working for Families" subsidised honky family appear to be doing some navel gazing at the moment and are not confident to load up the credit card with motel accommodation at the beginning of an uncertain year.

Disappointingly, we have also found a decrease in quality longer stay bookings. More holiday makers appear to be less willing to commit and are more likely to chance their arm by turning up unannounced, stay for one night and moving on.

Many "Motellas" will be consoling themselves with the return of a few sales reps from the 5 January. Business trade is the backbone of the motel industry and hopefully rep trade will be able to be sustained through 2009 as businesses try to maintain sales.

A quick scan at wotif.com reveals that many commercial accommodation providers are already cutting rates to unsustainable levels. To start this strategy at the peak of the holiday season is madness.

A key focus for the motel industry in 2009 will need to be sustainable yield management and quality.

We're back live!

Motella is back!

I love this time of year. High occupancies, hot temperatures and happy guests that are delighted to pay rack rates!

2009 is going to be a blast. We will continue to be an independent lone voice against the non-producers that regulate and influence the motel and tourism industry - often in the name of "the common good".

We will continue to ridicule the creep of political correctness, mysticism, global warming alarmists and corporate welfare.

We will continue the fight against socialist idealism that has slowly become part of business culture. We will rally against the concept of "quadruple bottom line accounting" that champions corporate social responsibility, environmental sustainability and prescribed culture above the financial bottom line.

We believe in capitalism, individualism, the free market and the virtues of the noble businessman - the producer, the creator, the originator.

We will continue to discuss all things "motel" and have a lot of fun along the way...