Rotorua room rates rise

The price of staying in Rotorua has gone up, but it's still cheap compared to other parts of the country. Photo / RDP

Rotorua is one of the cheapest places to stay in the country - but accommodation prices are on the rise and that's good news according to industry experts.

The latest Hotels.com Hotel Price Index which looks at hotel prices and travel trends from around New Zealand and the world showed while the price of staying in Rotorua has gone up, it's still cheap compared to other parts of the country. The average price of accommodation in the first six months was $131, up 4 per cent from the same time the previous year. Despite this rise, room rates in Rotorua were still $26 below the national average of $157 per night placing it in the top five destinations where travellers paid the least for accommodation.

The index also revealed Rotorua as the fifth most popular Kiwi destination for overseas travellers for a third year in a row.

According to Rotorua Hotels' Tourism Industry Association sector chairman Gert Taljaard the trend of prices going up showed improved returns for stakeholders, which in turn opened up possibilities for further investment in Rotorua's accommodation sector.

"That investment in turn flows down into the community in the form of increased wages and salaries, as well as employment opportunities."

He said while Rotorua rates still had a way to go, they were starting to move upwards and that was positive news.

"However it's important to understand that the national average is influenced by the number of five-star properties in other cities, compared to Rotorua where they aren't present. Nevertheless our destination is under-valued if room rates are significantly lower than the national average and hence operators need to focus on the product and service offering to visitors, as opposed to the price. This latest increase shows that this approach is starting to flow through the sector."

Destination Rotorua marketing general manager Oscar Nathan said it was great news that prices were starting to increase, particularly in Rotorua where there was such a diverse accommodation offering.

"It's important each segment of the market finds its price point, and that price point delivers not only a quality accommodation offer - at whichever level - but also affords the operator a return on investment so they can grow the business and reinvest."

Mr Nathan said the Famously Rotorua campaign and other market initiatives were all focused on delivering an experience that had visitors staying longer, doing more and coming back.

"Our inherent challenge in Rotorua is to ensure our accommodation stock is keeping in line with visitor expectations and quality ..."