Evans and her husband have owned the motel for the last three and a half years, and in that time, their average annual occupancy rates had increased from 70 per cent to 80 per cent.
She thought this was due to a range of factors, one of those being a change in the public image and perception of Whanganui as a town.
“People used to drive through Whanganui, and Covid made people stop and investigate towns that they’d only driven through before.
“A lot of people, when they come, they say, ‘We had no idea there was so much here to do’, and then they follow it up by saying, ‘We’ll be back’,” she said.
She also acknowledged the city had benefited from other recent events like Cyclone Gabrielle interrupting people’s travel plans.
“In a sad sort of way, we have benefited because other areas have had other impacts which have affected them,” Evans said.
The gradual return of international tourists also played a part in the bump, as the general standard of accommodation in the town improved.
However, BK’s Magnolia Motor Lodge owner John Carrick said occupancy rates weren’t everything when it came to running a motel.
Rather, what was more important was what price those rooms were booked at and whether people stayed at a discount or not.
“You can have 100 per cent occupancy and still be bankrupt.
“We’ve been in the business over 25 years, and I’ve always said I’d rather have a half-full motel at full price than a full motel at half-price,” Carrick said.
At full occupancy, he said, you’d be paying double the cost for cleaning and general maintenance, which impacts the bottom line.
The Magnolia, which has 16 units, was full most days and operating at an occupancy rate of around 75 per cent.
The need for emergency housing had also caused a shortage of motels around the city, which he linked to the high occupancy rates.
“It’s certainly very buoyant, as there’s a shortage of beds around here now,” he said.
The Collegiate Motor Inn was bought by Whanganui District Council Holdings Limited to be turned into student accommodation for the New Zealand International Pilot Academy and Midtown Motor Inn was bought to be turned into emergency housing.
“When they closed ... that took out something like 124 beds, and they’ve never been replaced for general overnight accommodation.”
The recent fire at the Avenue Hotel would further exacerbate this issue, as the hotel was expected to be out of commission for months to repair.
“If I was 20 years younger, I’d be building a new motel right now - I wouldn’t be mucking around, I’d be into it,” he said.
Whanganui & Partners acting chief executive Johnathan Sykes said it was crucial the city’s accommodation offerings grew to support increases in visitor numbers.
“Having a four-star hotel or more accommodation available is really the missing element as our visitor numbers grow,” Sykes said.
While she didn’t want to encourage too much competition, Evans said on particular weekends there was a shortage of beds in the city, so an extra hotel would help in busy times.
She also thought the retail sector could lend a hand too by leaving shops in the town centre open on Saturday afternoons.
“The [river] market brings a lot of people in on a Saturday morning, and then come the afternoon, the shops and the cafes are all closed so there’s nowhere for them to go.”
Having CBD businesses open would especially help on rainy Saturday afternoons, as the city lacks indoor attractions to send people to.
Finn Williams is a multimedia journalist for the Whanganui Chronicle. He joined the Chronicle in early 2022 and regularly covers stories about business, events and emergencies. He also enjoys writing opinion columns on whatever interests him.
