Freeze on many prices a benefit to travellers

Press, 27 September 1988, Page 32

Freeze on many prices a benefit to travellers

By

LES BLOXHAM,

travel editor

Tourists in New Zealand are gaining big benefits from a highly competitive travel industry which has been forced to generally hold — even lower — prices over the past 12 months. A survey round the South Island by “The Press’’ last week revealed that travellers have never had it so good. Bargains are available in most sectors of the industry including air and road travel, accommodation, sightseeing, and meals. For instance:

Accommodation: Many hotels and motels have held their tariffs at last year’s rates while others, particularly in depressed areas, are offering big discounts. Accommodation in a number of tourist towns in the Southern Lakes region is being offered for as little as $3O a room, about a third of the rate being charged two years ago. Air fares: Domestic air fares have not been increased since May, 1987, two months before the introduction of main-trunk competition. Since then the domestic airlines have introduced a wide range of discounted fares, effectively slash-

ing air travel to its lowest level in a decade. Coach tours: These prices also reflect the competitive mood of the market. For instance, a price war on the Christchurch-Queenstown route has led to a reduction in the base fare from $59 to $35. Other fares remain stable. Sight-seeing: Small aircraft and helicopter operations have generally absorbed higher costs to keep down prices. Discounts have also been introduced for flightseeing and other attractions, such as some Queenstown jet-boat trips. Meals: Most restaurants have maintained their prices for more than a year. A few have modified their menus to keep down costs and at least two in Christchurch have actually reduced prices. The charge for wine, however, remains high compared with prices for the same product in bottle stores. Souvenirs: Prices generally have been held at 1987 levels. The survey revealed that the only substantial increase tourists face is a 400 per cent hike in airport departure tax. It now costs $lO to leave the country.