Queenstown Hotel Delay ‘Frustrating’

Press, Volume CVI, Issue 31196, 21 October 1966, Page 17

Queenstown Hotel Delay ‘Frustrating’

Delays in the construction of motels at the Hermitage; and the Tourist Hotel Corporation hotel at Queenstown ■ could result in a further con-! centration of tourist interest; in the northern part of the! North Island to the detriment ! of South Island tourism, the chairman of the South Island! Publicity Association (Mr H? P. Smith) said on Wednesday I Bed occupancy was a “vici-j ous circle.” he said. “The longer we wait to pro-: vide beds in the South Island! the stronger will be the argu-I meet against them on the; grounds of occupancy." Mr Smith said. "Delay in provid-j ing accommodation in the South Island justifies the con-| centration of tourist traffic where there are beds, as is! the case in Auckland. "It is being said that afterl everything has been approved ! for the Queenstown Hotel the , project is being held up in) the Treasury because the! likely occupancy rate would j not be sufficient to show an) operational profit. This would; be a great pity because there) is no use sitting around wait-1 ing for an over-demand for) beds before providing the) hotels.” Mr Smith said it had frequently been said at Minis-) terial level that it was no use I generating tourist flows un-j less beds were available. The Queenstown project had been ) recognised as a priority job ' by everyone associated with the industry. "But we have never before 1 had it raised that occupancy would not justify its construction,” he said. I “The provision of addi- 1 tional accommodation at the 1 Hermitage is equally important and the delay in the con- 1 struction of motels equally ' frustrating." 1 Mr Smith said the recent:' announcement by the International Air Travel Association: in Honolulu, recommending!' reductions in fares between;: the United States and the: South Pacific, should generate

more traffic to New Zealand. “Also, the recent representation for direct international flights to Christchurch strengthens the demand for more beds in the South Island," Mr Smith said.