SECTOR COMMERCIAL & INDUSTRIAL
Hotel sector ready to welcome more visitors
Dean Humphries, National Director of Hotels, Colliers International
The New Zealand hotel and tourism market underwent an unprecedented period of growth between 2013 to 2019, underpinned by strong international visitor numbers — reaching a record 3.9 million in 2019. The arrival of COVID-19 dampened demand over 2020 and 2021, but the hotel industry is now raring to go and ready for an influx of visitors.
Despite the tourism industry experiencing a significant decrease in demand, a recent report published by the International Monetary Fund acknowledged New Zealand’s sound management of the COVID-19 crisis was instrumental in cushioning the wider economic impact. This included the Government contracting 34 major hotels for mandatory isolation purposes — MIQ hotels — which provided financial assistance to the sector, while ongoing domestic leisure and corporate demand also remained in play for much of this period. With international borders progressively reopening, the Tourism Export Council of New Zealand estimates international
32
|
The Real Estate Institute of New Zealand
demand will return to pre-COVID levels within approximately four years. This is supported by a recent release by the International Air Transport Association that expects traveller numbers in the AsiaPacific region will reach 2019’s pre-COVID levels by 2025. New Zealand will see a record 58 hotels, circa 8,230 rooms, completed between 2018 to 2024, adding a range of quality hotel options. As border restrictions ease and overseas visitors return, a robust recovery is anticipated over the next 18 months with the medium to long-term prospects of the hotel sector remaining positive.
