Rotorua still one of cheapest places to stay

Destination Rotorua Marketing general manager Oscar Nathan said the increase in Rotorua was a good thing. Photo / Andrew Warner

Hotel prices have gone up across Rotorua and New Zealand in the past year but Rotorua remains one of the least expensive places to stay.

According to the Hotel Price Index for 2012/13, New Zealand hotel prices rose by 5 per cent in 2013 to an average $152 a night, more than the average global rise of 3 per cent.

The report stated this was the fourth consecutive year of positive growth since hotel prices nose-dived following the global financial crisis.

Rotorua prices also increased by 5 per cent but are still well below the national average. Travellers can find a room in the city for an average of $130.

That compares to $145 in Auckland, $187 in Queenstown and $166 in Napier, which jumped 8 per cent.

The report stated a strong New Zealand dollar, particularly compared to the Australian dollar, had resulted in an increase in consumer confidence.

"This, coupled with the New Zealand Government announcing an additional $158 million funding of tourism infrastructure over four years was the main force behind hotel rates bouncing back across the country."

Destination Rotorua Marketing general manager Oscar Nathan said the increase in Rotorua was a good thing.

"It's very heartening to see an overall increase in Rotorua hotel rates, particularly as we drive forward with our Famously Rotorua campaign and push for improved quality and diversity in our Rotorua offering.

"With the breadth of accommodation on offer here - ranging from luxury lodges, hotels, motels, holiday parks, apartments, B&Bs and holiday homes - it's important operators price accordingly, to not only fit in with increasing customer expectations but also in terms of generating a level of return on investment that allows them to continue to invest in refurbishments and upgrades," Mr Nathan said.

Novotel Rotorua Lakeside and Ibis Rotorua general manager Fraser McKenzie said a lot of hard work had come to fruition in the past two years. "The Rotorua tourism industry has worked hard to create a market presence where the unsurpassed quality of the destination is matched by world class facilities, attractions and accommodation. While we represent tremendous value to visitors, there is still room to grow yield across the board and remain accessible to our domestic visitors, thus supporting infrastructural development and reinvestment in the Rotorua community.

"Much of this forward momentum is due to a change in the way Rotorua has addressed the needs of the travelling public, and a re-ignition of New Zealanders' curiosity about Rotorua as a world class leisure, meeting and exhibition environment," Mr McKenzie said.