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The Motel Association is hoping falling petrol prices will encourage people to get back out on the road and stay overnight, after one of the toughest months for the industry.
Statistics New Zealand figures released yesterday reveal a 14 per cent fall in the number of nights spent in motel accommodation in June compared with June last year.
It was the main driver of a 5 per cent drop in total accommodation nights during June, which were down 96,000 on last year to 1.7 million.
Motel Association chief executive Michael Baines said the figures were expected to be down, based on feedback from members, but some regions were being hit harder than others.
"It is quite regionalised - some areas are still doing quite well, but those reliant on feeding in fromAuckland have been particularly hit."
Baines said the main reason behind the fall was higher fuel and power prices.
"A big part of it is domestic tourism. That is obviously a reflection of petrol prices and power going up. A lot of travel for leisure is dependent on disposable income."
About 70 per cent of people who stay at motels are from this country, with many using motel accommodation to visit friends and family.
But Baines said areas with strong links to agriculture, such as Taranaki and Otago, were still seeing strong visitor numbers.
He said the petrol-price rises in June had come as a big shock to many people, but now that the price was coming back down the industry was hoping to see a return of locals.
"As petrol prices have fallen back cars are already appearing on the road again. We are starting to see the people come back."
But despite the tough month overall, total guest nights increased 2 per cent in the year ending June 2008 compared with the previous June year. Seven of the 12 regions recorded higher numbers of guest nights led by Auckland and Canterbury.
Statistics New Zealand said the overall trend had seen guest nights increasing since January 2006.
