Hotel results showing improvement
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But it's clear from looking at hotel data that 12 months has definitely passed, and what a difference a year makes!
The data proves that August 2012 produced nowhere near the same levels of business compared to the RWC period.
Total occupancy for all TIA Hotel regions in August 2012 was 69.4 per cent down 4.2 points compared to August last year with all star ratings experiencing decreases. ADR was also down $3.08 to $134.16 compared to August 2012 and RevPar dropped significantly, down $7.96 to $93.04.
These decreases can be attributed to the pre-RWC August 2011 being notable for its strong surge in corporate and C&I business, with both local and international clients scheduling meetings and events ahead of the tournament. This resulted in higher than usual occupancy, ADR and RevPar for that month.
However, if we discount the unusual 2011 results and compare the August 2012 figures to the same month of 2010, a different – and more positive – picture emerges.
Occupancy was up 3.3 points from 66.1 per cent in 2010 to 69.4 per cent and ADR was up a healthy $6.89 to $127.27. RevPar was also up, by $8.19 from $84.14. These increases are particularly notable given the increased hotel capacity, and therefore more competition, that entered the market pre RWC in Auckland and Queenstown.
While not every region benefited equally from the pre-RWC surge, most regions have improved on their August 2010 figures. We believe this indicates an upswing for the hotel sector and we look forward to more positive results. The last 12 months have certainly highlighted that events, be they national or regionalised concerts, conferences, festivals or sports events, drive visitation and demand and are critical to the on-going success of hotels and the regions they operate in.
With the first Hobbit movie due to be released later this year, excitement is already building among movie fans and throughout New Zealand's tourism industry. Expectations are that the movies will match or even outstrip the success of The Lord of the Rings trilogy which brought measureable benefits in terms of visitor arrivals and spend.
There are signs of progress in the rebuild of Christchurch, with the Ibis Christchurch recently reopening. The Christchurch City Plan has also been finalised and much to the relief of existing hotel operators the location of the Convention Centre is in the heart of the CBD and only a stone's throw from the hotels that are currently working to reopen.
As we look towards the summer peak season, we have reasons to be positive in our outlook. As they say, "prepare for the worst but hope for the best".
