Bay of Plenty accommodation data reveals sector hit hard by lockdowns, cancellations

Accommodation data reveals a struggle for the Bay of Plenty. Photo / NZME

A Bay of Plenty hotelier is focusing on survival as new data shows the region's accommodation sector has taken a huge hit.

The sector is struggling as domestic lockdowns, cancelled events and lack of international tourists impact occupancy rates and guest nights.

Ministry of Business, Innovation and Employment-led Accommodation Data Programme figures show September occupancy rates, daily capacity and total guest nights were the lowest since the data programme began in June last year.

The data covers short-term accommodation including hotels, motels and apartments, backpackers, holiday parks and campgrounds, and lodges and boutique accommodation.

It shows occupancy almost halved in the year to September from 38 per cent to 19.7 per cent. Total guest nights for the month were down almost 58 per cent from 99,500 to 42,000. This refers to the number of nights booked rather than visitors so two guests staying three nights would generate six guest nights.

The number of units available, or daily capacity, has increased by 5 per cent from 5391 in September last year to 5673 in September this year.

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Hotel Armitage general manager Nicolas Caffardo said the past 18 months were among the most challenging the venue had faced.

Caffardo, who worked in Europe during the Global Financial Crisis, said the industry's focus was on survival.

"The current situation is not sustainable. We appreciate the Government's financial support but it's not enough.

"You cannot run a hotel with 20 per cent occupancy."

Caffardo said the industry looked forward to New Zealand's borders reopening but there was anxiety around staffing.

"I've seen countless cafes reducing their operations [because of lack of staff]."

Caffardo said everyone was trying to stay optimistic.

"We are preparing the best we can. We know we can bounce back if we stick together.

"If we make it we could see some great years ahead."

Pacific Coast Lodge owner Sarah Meadows said international tourism made up 75 per cent of the lodge's market.

"We are screaming out and needing the borders open. It must come soon before more hostels have to close their doors."

Meadows said more hostel closures would have a damaging effect on the landscape of accommodation providers in New Zealand.

Hotel Armitage general manager Nicolas Caffardo. Photo / NZME

According to information provided by Tourism Bay of Plenty, some significant accommodation providers don't contribute to the data. In addition, around a third of domestic visitors to the region stay with friends and whānau.

Tourism Bay of Plenty strategy and insights head Stacey Linton said average daily visitor numbers in the coastal Bay of Plenty were down by about 10,000 in September in comparison to the year before.

"Our accommodation sector has been severely impacted by recently cancelled events such as AIMS Games. The ongoing Auckland and Waikato lockdowns, especially during the school holidays, heightened the impact.

"We know that backpacker accommodators in the region have been struggling with the loss of the international visitor market too."

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Linton said Auckland and Waikato were the two largest visitor markets for the Bay of Plenty and accounted for 58 per cent of visitor spend in September last year.

"It's been a tough time for tourism operators in the region with the continuing domestic travel restrictions coupled with international border closures."

Ministry of Business, Innovation and Employment's tourism, evidence and insights manager Amapola Generosa said the main factors contributing to the results were linked to Covid-19 and alert level settings.

"In particular, the highly-restricted travel into and within Auckland, and regions near Auckland (such as Rotorua) missed out on their primary source of visitors. Additionally, the nationwide Alert Level 3 setting in the first week of September 2021; the mass cancellations of bookings made in August, and general hesitancy to travel due to uncertainty on restrictions being re-imposed."

Generosa said the latest tourism electronic card transactions data showed domestic tourism expenditure was down 44 per cent in the year to September.

"While this is a sizeable decrease, it shows that accommodation was likely worse hit than other tourism industries."

Changes to the average number of units per establishment and the average number of guests per unit were marginal but the average number of nights stayed per guest decreased from three to 2.8 nights.

Priority One chief executive Nigel Tutt. Photo / NZME

Priority One chief executive Nigel Tutt said the accommodation sector was heavily affected by lockdowns over the period.

"While we know it's hard on some tourism and accommodation related businesses, we do not expect it will have much effect on the whole of the economy as this is a relatively small sector."

Tutt said a positive side effect of the situation was some of the accommodation may switch to the rental market.

Tauranga MP Simon Bridges. Photo / NZME

Tauranga MP Simon Bridges said the numbers showed the negative impact of lockdowns on local tourism and accommodation providers.

"The answer is to get out of lockdown and end MIQ for the double vaccinated so more local and international visitors can experience all Tauranga has to offer."

Waiariki-based Labour List MP Tamati Coffey. Photo / NZME

Waiariki-based Labour list MP Tamati Coffey said the numbers reflected "long-term challenges".

"The suite of data research they come from, allows us to accurately monitor the true cost to our sometimes too-modest business owners, and factually base future announcements, as we eventually move from vaccination to securing New Zealand's recovery."

Coffey said vaccination was the way to improve the ailing accommodation sector.

"Getting vaccinated not only reduces the risk of Delta in your whānau, it saves jobs."