Hospitality sector faces winter test

BY GILES BROWN
Last updated 05:00 15/04/2009

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New Zealand's tourism industry has weathered the global recession during its high season, but the winter months will be the true test.

Easter traditionally marks the end of the high season, which tourism operators say has been quieter than previous years.

Statistics New Zealand figures show visitor arrivals were down 4 per cent in January, and 9 per cent in February, compared with the previous year.

From December to February, South Island guest nights dropped between 2 and 8 per cent each month compared with the previous year.

"There's certainly been an impact overall. I would suggest most operators are down between 10 and 20 per cent," said Mark Quickfall, managing director of Totally Tourism, an umbrella company for a range of South Island tourism operations.

The impact of the global downturn had been compounded by bad weather in the summer months, which affected many of the company's scenic flights.

"There's no question we have seen an impact, but it perhaps hasn't been as bad as people considered it may have been. Going forward is a bit of an unknown," he said.

Christchurch moteliers also reported fewer guests.

Arcadia Motel owner Mike Brown estimated there had been a 26 per cent fall since October, while Tim Henderson had cut back on staff at his Bella Vista Motel on Bealey Ave.

However, he was still refurbishing the site.

"You have to keep up standards, that's what the tourist expects," he said.

"The winter has always been difficult, but because of the uncertainty with overseas people coming to Christchurch and local people travelling, we just don't know what's going to be around the corner."

Akaroa's Black Cat Cruises said its season had been strong due to domestic and backpacker customers.

Greymouth Bella Vista owner Bryan Williamson was also upbeat.

March numbers had been about the same as last year, but February had been busier, with guests saying they wanted to visit rural areas like the West Coast and bypass major cities.

Tourism Industry Association chief executive Tim Cossar said the future was uncertain, due to a drop-off in people booking ahead.

"We are dealing with short-term consumer decision-making," he said.

The sector had been fortunate that the economic slump had been highlighted before the high season, and many operators had been able to adapt.

It was imperative the Government continue to help the sector market itself abroad, especially in Australia.

"The key for the tourism industry will be what happens next season and that's when we will see the full affect of that late-booking pattern coming into play," he said.

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- © Fairfax NZ News

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