NZ needs more 5-star hotels, says airline chief

Tourists are turning their backs on New Zealand because of a "woeful shortage" of top-class hotels, according to the head of the national airline.

Rob Fyfe, chief executive of Air New Zealand, told an American Chamber of Commerce meeting that many of the great five-star brands - such as Raddison, Four Seasons and Westin - were American.

"Where are those five-star hotels here? Because we now also have a woeful shortage of true world-class five-star hotel capacity nationwide."

Mr Fyfe said luxury hotels would attract "high-value, high-spending and discerning customers who demand nothing less than world-class accommodation".

They were "customers who benefit all of us in the tourism industry".

But some in the industry criticised Mr Fyfe's comments last night.

Jonathan Knox, marketing development manager at Qualmark, which gives NZ accommodation its star rating, said Mr Fyfe seemed to want a "big box of glass jewellery" instead of "two or three Tiffany boxes".

New Zealand could not compete with bigger countries on the number of world-class hotels, but it could compete in terms of quality.

Mr Knox said Qualmark differed from quality assurance agencies overseas where they were often merely credit systems awarding ratings.

Qualmark worked with accommodation providers across their whole management systems, which included coaching them to get results and helping them improve and develop service.

"We work with them, so overseas you might not stay in a one-star hotel, but here you have to be world-class just to get one star."

According to Qualmark, New Zealand has 188 five-star accommodation establishments.

Of those, seven are exclusive lodges, such as Huka in Taupo and Blanket Bay in Glenorchy.

Nine are five-star hotels, five of which are in Auckland.

They include the American-owned Hilton, the Langham, owned by Hong Kong-based Eagle Holdings, and the Australian-owned Stamford Plaza.

The New Zealand-owned SkyCity Grand is also a five-star-rated establishment and media relations manager Paul Gregory agreed it was important for the country to be able to offer top-quality hotel accommodation.

The 316-room hotel had been doing that since opening about a year ago, he said.

"As a world-class, New Zealand-owned experience it has got positive reviews from guests."

Mr Fyfe said New Zealand's world-class lodges were "beloved by the few that can afford to stay there" but they were part of a niche tourism strategy.

But Bruce Robertson, chief executive of the Hospitality Association, said there was not the demand for five-star accommodation.

There were a lot of backpackers, and most visitors chose mid-level accommodation. "I'm not sure the market is saying Mr Fyfe is right."

Five-star qualities

* Courteous and professional staff.

* Immaculate cleanliness and hygiene; restaurants and bars with first-class service, food and drinks; gyms, pools and business centres; and management that is second to none.

Prices

* Start at $300 a night. Penthouse suites can be more than $1500, which includes breakfast, a couple of drinks and valet parking.

Guests

* Bill Clinton, Pavarotti and Charlize Theron (at SkyCity Grand).