Lousy summer weather and the impact of the Christchurch earthquakes cut demand for hotels, backpacker lodges and holiday parks in January.
They also suffered as tourists preferred to stay with family and friends, despite arriving in record numbers for the month from overseas.
The total number of guest nights fell 4.2 per cent to 4.2 million in January despite there being 266,800 short-term visitor arrivals in the country, said Statistics New Zealand.
Chief executive of Motel Association NZ Michael Baines said the reduction in paid accommodation was worrying, as January was traditionally a strong month in the industry.
"In terms of international visitors, it is important to look at the type of visitors coming into the country. The lowering of airfares means we see a lot of people that probably won't spend as much.