Lucky few benefit from rugby extravaganza
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That is no easy task because while it was undoubtedly profitable for some, particularly a number of those in the key match areas, others were less impressed and say they actually lost business as normal customers put their plans on hold until the circus was over. In short, the hoped for bonanza might have only eventuated for a lucky few providers.
According to statistics released in mid December, New Zealanders staying at home in October meant the anticipated Rugby World Cup bonanza never really eventuated for most in the accommodation sector. Statistics NZ said that guest nights for international visitors rose 7.1 per cent in October, but this was offset by a 6.5 per cent fall in domestic guest nights. This meant there was an overall fall of 1.5 per cent in total guest nights during October when compared with the same month last year.
Industry and labour statistics manager Louise Holmes-Oliver said while RWC'11 lifted international guest nights in October, particularly in the North Island, domestic guest nights were down in nearly every region. "This continues what was seen in September 2011, with increasing international and decreasing domestic guest nights," she said.
International guest nights were higher in nine of the 12 regions in October when compared with the same month last year, particularly in Auckland, Wellington, and Waikato. With 13 of the 15 World Cup games in October being held in the North Island, this half of the country saw a 24 per cent rise in international guest nights. However, New Zealanders stayed at home, with domestic guest nights down in nearly every region, except Nelson Marlborough and Otago. Wellington showed the largest increases of all regions.
Canterbury continued to show the most substantial regional fall in guest nights to such an extent that the combined increases for Auckland, Nelson Marlborough and Wellington were more than offset by the fall in Canterbury, which not only lost its games because of the earthquakes, but much of its accommodation as well.
Heads of hotel, motel and bed and breakfast associations contacted by AMG said their findings more or less confirmed those of Statistics New Zealand.
New Zealand Hotel Council executive officer Rachel Shadbolt said RWC '11 was "a fantastic event and hotels in the Rugby World Cup regions where the games were played, did very well." But the occupancy levels during the months of September and October did not change much from the same period in other years, she said. RWC visitors had just replaced a lot of normal September October business.
"Obviously our average daily rate and therefore our rev par was very strong, but there were a lot of peaks and troughs. There'd be very strong occupancy and rates around the game day, but mid week it was very quiet in places."
Regions that did not have core pool games or games near the finals, did not enjoy the Cup as much as the other regions did, Ms Shadbolt said. "The regions that had games, such as Wellington, Auckland, Dunedin and even Nelson, had very good months with high yields, but it wasn't an absolute boom for the six weeks of the tournament." However, August – pre RWC, and had been strong for corporate and conference business, as had, somewhat surprisingly, November. "We didn't expect that because it was an election month and often corporate dries up during that time."
It was much the same in the bed and breakfast market, according to association CEO, Trevor Knight. "The B&Bs in the areas where games were being played, especially the main centres, were fairly busy and did quite well out of it. In the more remote areas, such as the Coromandel, some that really promoted themselves did quite well, but those that just waited to see if work would come along, often didn't have many bookings at all," he said.
"My opinion is that the negative publicity in the newspapers before RWC about accommodation price gouging did quite a bit of damage, not only to B&Bs, but hotels and motels as well. I advised our members not to do any price gouging because you've got to think of the future, and to my knowledge no member of our association did."
Mr Knight said in his own area, Coromandel, there were a lot of World Cup visitors but virtually all were in camper vans. He had heard the same was true in other areas as well.
Motel Association chief Michael Baines confirmed the displacement factor and
was sceptical that the Cup had been much of a windfall for motels in general. The effects had been mixed, with some, particularly in the main game areas, doing extremely well. It had all turned out pretty much as MANZ had expected, he said.
