Motel price freeze

Press, 25 February 1978, Page 21

Motel price freeze

Concern that the recession will hit the motel industry this year has led a group of motel owners voluntarily to freeze tariff rates from March to December, 1978. The 90 members of the Auto Motor Inns group had agreed to freeze tariffs in order to give a lead to the tourist industry, according to the New Zealand director (Mr Brian Blake). Mr Blake said airline figures had shown a decrease in the number of Australian tourists visiting New Zealand this season, while local holidaymakers had flocked to camping groups and opted for cheaper forms of accommodation in unprecented

numbers. Motel rooms had been available at Rotorua, Taupo, and other popular resorts at Christmas for the first time in memory, Mr Blake said. Mr Blake predicted that the recession would worsen in the motel industry Many motels in country districts in Australia had gone out of business in the last two years, be said. Those in New Zealand would follow the same trend. “The same thing is happening now,” he said. At this time of year all holiday resori motels were usually booked for Easter, but bookings were still available at every resort throughout the country.

Mr Blake said ih« industry had to absorb rising costs or reach breaking point. “More people are now looking for cheaper accommodation.” Local e<—•’■nment bodies should r 'uiiding pe ■ mils fot motels until it was they were necessary, .ir Blake said He believed competition was ’good,” but feared the note) industry here would suffer the same fate as Australia’s Gold Coast motels which were sited on the most expensive real estate but offered the cheapest tariffs. Staggered holiday s would assist the motel in dustry m New Zealand. Mr Blake said.