Boom in tourist hotels

Press, 21 April 1986, Page 4

Boom in tourist hotels

By

OLIVER RIDDELL

in Wellington New Zealand is in the middle of a hotel-building boom, according to the Minister of Tourism, Mr Moore. Estimates amount to about $475 million. What Mr Moore called a hotel development “gold rush” meant more than 26,000 jobs, and would create another 3700 hotel rooms by 1990, he said. It covered 23 projects, of which 10 were under construction, two were about to start, and plans were well developed for another 11.

They would provide 21,500 jobs in the construction Industry and 5400 in the hotel industry, Mr Moore said. The 12

now being built or about to be built were costing $2OO million and would provide 1700 new rooms. The other 11 would provide nearly 2000 more rooms. Cost estimates were not yet available for three of them, but the estimate for the other eight was $256 million. “I have been talking with other potential investors here and abroad, and this list is by no means final,” Mr Moore said.

Eight centres were included in the boom.

Two projects were under way, one about to start, and one planned in Auckland, at a total cost of $139.5 million, to provide 798 rooms.

In Rotorua and Taupo one extension was under way and a new project was about to start, at a cost of $66.6 milion, to create 462 rooms! A 73-room extension project had started at Palmerston North to cost $6.1 million. i.

In Wellington, two projects worth $32, million and creating 306 rooms were under way, (and another 250-room development was planned; no cost yet being available.

In Christchurch, a 127room project costing $l4 million was started and another two r were planned, to cost $67 million and create 410 rooms. i

At Mount Cook a 45-

room hotel extension costing $l2 million was planned. At Queenstown and Wanaka, three developments costing $21.5 million and creating 170 rooms were under way. Another five projects were planned, of which no costs were available for two. The other three would cost $87.5 million, and all five together would provide another 825 rooms. A 228-room hotel costing $3O million was being planned in Dunedin. Policies to spur hotel investment were paying off, said Mr Moore, along with investment in overseas promotion and

the creation of new airline links. Foreign policy Issues, such as A.N.Z.U.S. and the sinking of the Rainbow Warrior, were putting New Zealand on the map and having positive effects, he said. New Zealand’s image as a clean, green, friendly and safe .destination was becoming a big factor helping to fuel the visitor boom, especially from the United States. Between 1980 and 1985, New Zealand’s total foreign exchange earnings had grown 104 per cent, but earnings from tourism had risen 243 per cent. The latest (January) figures showed this rapid growth continuing.