Main centres’ tourism grows

Press, 6 October 1988, Page 29

Main centres’ tourism grows

NZPA Wellington Strong long-term growth in the main centres is forecast by accountants and management consultants, Arthur Young, in their annual report on the tourist industry, released yesterday. Difficulties will continue in the provincial areas, the hotel industry survey says. It identifies Auckland, Wellington, and Christchurch as areas in which more overseas visitors concentrate their stays, at the expense of provincial hotels. Mr Murray Compton, of Arthur Young, emphasised the survey related to hotel operations only, but said there were significant longterm positive signs for the industry to grasp. These included strong growth forecast for major international airlines in long-haul travel to the South Pacific basin and

travel within the Pacific-Asia area. The additional domestic growth that should occur from an economic upturn, increased internal marketing and returning growth from the Australian market, should aliow for profitable years ahead, he said. The survey revealed mixed results in the hotel industry during 1987, with large and expansive international hotels in the main centres outperforming all other hotel groups. Key findings were: 0 The average room occupancy in New Zealand was 65 per cent in 1987, down one percentage point from the previous year. Occupancy was up six percentage points in Auckland, which achieved a record average of 76 per cent. Provincial hotels lost 12 percentage points to 45 per cent. North Island hotels nowhave a 10-point margin in occupancy over the South Island while main centres, at 71 per cent, are ahead of the resorts and provinces. @ International visitors now comprise 71 per cent of guests using top-price hotel

rooms. Overall, the guest mix changed, domestic travellers comprising 42 per cent of al) hotel guests (up one percentage point), visitors from the United States 21 per cent (up one percentage point), Australians 14 per cent (down four percentage points) and Japanese 9 per cent (up one percentage point). Main centre hotels had more guests from the United States and Japan, although New Zealanders continued to dominate their guest mix. ® Average room rates rose 21 per cent to $95, after increases of 26 per cent in 1986 and 17 per cent in 1985. This showed considerable growth in the last three years from the 1984 average room rate of $5O. Auckland had the highest average room rate at $llO with Queenstown $lO5, and Rotorua $B5. ® Despite increasing overseas visitor arrivals, hotels surveyed employed 100 less full-time equivalent staff in 1987. © Hotel food price increases more than offset the decline in the number of meals served. ® Beverage revenue has

dropped and now amounts to less than 20 per cent of all hotel revenue, compared with 33 per cent in 1982. ® Over-all house profit is now the highest of all the surveys at 21.4 per cent, revenue because of the large growth in revenues achieved by larger main centre hotels. Elsewhere, profitability de* dined, the survey says.