S.I. Tourist Bed Need

Press, Volume CVIII, Issue 31723, 5 July 1968, Page 13

S.I. Tourist Bed Need

(N.Z. Press Association) WELLINGTON, July 3. The Tourist Hotel Corporation has declared in its report to Parliament that without a greater tourist hotel bed capacity in the South Island some of the efforts to increase tourist traffic could be retarded. Tabled in Parliament today, the report said the corporation had submitted recommendations to the Government to build a 200-bed hotel in Queenstown and to bring the capacity of Te Anau, Wanaka and Franz Josef hotels up to a more economic size. “This is the only way the new resort hotels in the South Island will become economically viable and assist New Zealand in earning overseas currency from seasonal visitors wishing to visit the southern lakes and fiords,” it said. Outlining development priorities, the report said the corporation had submitted five priorities to the Government for urgent consideration if tourist traffic expected by 1970 was to be accommodated. The five projects were: Wairakei Hotel, an 80-bed extension and grill room; Waitangi Hotel, a 50-bed extension with grill roomcocktail bar and staff quarters; Te Anau Hotel, a 62-bed extension and staff quarters; the Hermitage, a 40-bed extension with grill room, enlarged bars and staff quarters; the Franz Josef Hotel,

a 50-bed extension, lounge, games room and staff quarters.

The estimated cost would be $1,915,000, and the profitability of the corporation would be improved by $187,110 per annum. Operating profit for the corporation had increased by $73,000, equivalent to 46 per cent more than the previous year. Visitors from overseas amounted to 41 per cent of total visitors and included 28,198 from Australia, 18,946 from North America, 4190 from Britain and 3334 from other countries.

Reporting on results from individual hotels, the corporation said that at Waitangi—with 79 per cent occupancy from October to March and 74 per cent from May to September—the hotel was becoming recognised as an all-year-round holiday destination. At the Wairakei Hotel there was a spectacular improvement of 130 per cent in operating profit to give a result of $105,045 for the year. This was achieved through maintaining occupancy of 78 per cent, gaining benefits from upgraded rooms on a higher tariff and making a big reduction in maintenance expenditure. A drop of nearly $17,000 in operating profit was reported for the Tokaanu Hotel, but the report said this was small compared with the likely drop In operating profit for the coming year. The report said the popularity of the Haast Pass justified extension of the Franz Josef Hotel to its most economical size of 120 beds, to take advantage of the seasonal months when requests

for accommodation could not be satisfied.

“Tour operators are unable to plot more tours through the Haast until a greater number of beds is available at this northern terminal point Extensions form one of the five priority projects,” it said.