Ski season helps visitor numbers creep up

Accommodation in the North Island, such as Mt Ruapehu's Chateau, is recovering but not as fast as in the South. Photo / Richard Robinson

The number of people staying in commercial accommodation is recovering but is still below levels seen before the financial crisis hit.

Statistics New Zealand figures released yesterday show total guest nights for September were up 3 per cent to 2.2 million, boosted by a rise in international visitor nights.

But they remain 2 per cent lower than September 2007.

The North Island has been slower to bounce back, with its 1.3 million guest nights still 4 per cent lower than 2007.

While the number of nights spent in commercial accommodation in the South Island were up 4 per cent on last year, it is virtually the same as 2007.

The South Island bias, which has been boosted by a strong ski season, saw Otago and Canterbury record the strongest growth levels of the 12 regions monitored.

Otago was up 19,000 nights or 6 per cent while Canterbury was up 11,000 nights or 3 per cent.

The only region to see a decline was Nelson/Marlborough/Tasman where nights were down by 2000 or 2 per cent.

International visitor nights were up 8 per cent to 800,000 in September while domestic guest nights grew by 6000, less than 1 per cent, to 1.4 million.

Hotels had the largest rise in nights, up 4 per cent or 30,000, followed by backpackers which grew 6 per cent or 16,000 nights.

Motel nights were up 2 per cent or 16,000 while holiday parks grew just 1 per cent, a boost of 2000 nights.

Occupancy rates remained similar to last year at 43 per cent.

Covec economist Shane Vuletich said the numbers reflected the ski boom in the South Island led by a big increase in visitors from Australia.

He said the general consensus was that the plummet in demand for accommodation had bottomed out but there was no expectation of a sharp rebound.

"Summer is going to be a bit like last year, still down."

Vuletich said he expected the main issue over summer to be yields - the margin a business could earn from selling a room to a guest.

Prices had come down over the past year to drive bookings and while it was easy to drop rates it was hard to bring them back up to sustainable levels.

Vuletich said that would affect how much accommodation providers could re-invest back into their businesses.

STAYING OVER

Guest nights for September 2009 compared with previous year:

* Total guest nights up 3 per cent to 2.2 million.

* North Island up 2 per cent to 1.3 million.

* South Island up 4 per cent to 900,000.

* International visitor nights up 8 per cent to 800,000