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in April and May 2003 |
| July 02, 2003 - After sixteen
impressive months of revPAR (revenue per available room) growth, (December
2001 to March 2003), New Zealand hoteliers could not escape the knock-on
impact of recent global events � most notably the outbreak of SARS and
the war in Iraq. Final May 2003 results from the New Zealand edition of
the HotelBenchmark Survey by Deloitte & Touche saw revPAR decline for
the second consecutive month, falling by 2.9 percent to NZ$68 (similar
to the 2.6 percent decline reported in April). This decline was driven
entirely by falling occupancy levels, however, encouragingly New Zealand
hoteliers managed to grow average room rates (ARR) for the fifth month
this year, with rates increasing by 4.5 percent to NZ$120.
Of the five cities tracked all except Wellington reported revPAR declines in May of between 3-12 percent. As the country�s capital, Wellington typically benefits from more corporate business and domestic leisure traffic from Monday through to Thursday than other key cities in New Zealand and as such commands amongst the highest average room rates. In May, Wellington saw revPAR increase by 6.1 percent to NZ$103, some NZ$30 higher than revPAR in Auckland. May figures from Tourism New Zealand revealed a 13 percent decrease in international visitor arrivals to the country. Unsurprisingly demand from SARS affected and risk sensitive markets showed the largest declines in visitor numbers. Visitors from China and Japan fell by 78 and 42 percent respectively, accounting for half the total decrease in international visitors to New Zealand. On a more positive note however, some of the country�s other key markets such as Australia, US, UK and Germany all reported an increase in visitors, helping to slightly soften the blow from the fall in demand from Asian markets. With the number of SARS related cases on the decline, Tourism New Zealand anticipate that international tourism numbers will start to return to normal levels during the second half of 2003. In terms of year-to-date performance, New Zealand hoteliers have certainly faired better than both their Asian and Australian counterparts. Despite declines in April and May, year-to-date numbers show a 6.5 percent growth in revPAR compared to the prior year, driven solely by an increase in ARR. Whilst the America�s Cup, which came to a close at the beginning of March will have impacted performance so too has the investment that has been made over recent years to increase the country�s profile as an international tourism destination. The hosting of the America�s Cup for the second consecutive year as well as increased publicity and interest stemming from the Lord of the Rings trilogy have both been key. The New Zealand edition of the HotelBenchmark Survey tracks the performance of 10,000 rooms across the country on a monthly basis. Note: all analysis in local currency (New Zealand dollars). |
Contact:
Pooja Madhok
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