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Hotel room incomes plummeted in 2020 - TIA

A managed isolation hotel in Rotorua. Photo: Daniel Hines/SunLive.

New data shows the devastating impact of the pandemic on New Zealand hotel revenues, with overall room income in 2020 falling by 40 per cent.

The Tourism Industry Aotearoa Hotel Data Survey became Hotel Data New Zealand in 2020 and it covers almost three quarters of all hotel rooms in New Zealand.

TIA chief executive Chris Roberts says the data includes hotels providing border isolation services, but that has only softened the blow.

"Nationally, average hotel occupancy had sat at around 80 per cent since 2016, until the COVID-19 pandemic hit and our borders were closed.”

Average occupancy in 2020 barely made it to 50 per cent the data shows. The average rate for a hotel room also slipped, and these combined factors resulted in a 40 per cent fall in the average revenue per available room, to just $91.

"At those revenue levels, the majority of hotels which remained open in 2020 were operating at a loss," says Chris.

The substantial fall in income was felt across all regions and all hotel categories.

For 3-Star Hotels revenue per available room fell from $95 in 2019 to $50 in 2020, while for 5-Star Hotels revenue per available room declined from $214 in 2019 to $123 in 2020.

Regionally, the biggest decline was in Queenstown, where average hotel occupancy fell from 82 per cent in 2019 to 42 per cent in 2020, and revenue per available room fell from $207 to $96.

Auckland was the only region in the country to maintain a revenue per available room above $100, but at $103 this was down from $161 in 2019.

Chris says hotels are grateful for the support of domestic visitors along with business and government guests.

"However, many will be relying on at least a partial opening of the borders to be able to return to profitability."

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3 Comments
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rooms

Posted on 12-01-2021 08:31 | By dumbkof2

if they were to drop the price a bit ,more people would stay there. a few days ago i wanted to book a room in rotorua only to find they were still charging full price. it was cheaper to travel back to tauranga than to stay n rotorua

Still too expensive

Posted on 11-01-2021 20:29 | By Johnney

If you look on Booking.com you won’t find room rates as low as indicated in the report. When there is a huge demand the hotels put up their prices and cream it. When the opposite happens they still price themselves out of the market and complain.

Hotel occupancy

Posted on 11-01-2021 20:20 | By tia

Perhaps if these multi Nationals Hotel chains charges NZ rates instead of tourist (overseas) rates then more New Zealanders would use them. 50% of a reduced rate is better than 100% of nothing.