Vacancy signs out after quiet summer

Those providing accommodation for backpackers have been the hardest hit. Photo / Wanganui Chronicle

There was plenty of room at the inn, the motel and the backpackers during March, the latest commercial accommodation figures show.

In the latest blow to the tourism industry Statistics New Zealand yesterday revealed March occupancy rates were at the lowest level since March 2000.

The average rate of occupancy for all accommodation was 59 per cent, a drop of 3 per cent since March last year.

Backpacker accommodation had the lowest level at 55 per cent, followed by motels on 59 per cent. Hotels had the highest occupancy rates at 64 per cent.

Nomads backpackers acting general manager Nadine Kaessemodel said it was the quietest summer she had seen since starting work at the group's Auckland backpacker site three years ago.

Normally the slow season started in May but it had started a lot sooner this year, she said.

The group owns two backpackers in Auckland and another in Wellington as well as having affiliations with several hostels in New Zealand. But she said it was still planning to open a fourth hostel in Queenstown in July to cater for the ski market.

Youth Hostel Association chief executive Mark Wells said his chain had not seen a drop and occupancy levels remained strong until the end of April when it had dropped off after the school holidays, as expected.

"Our occupancy pretty much replicates last year." The association directly manages 23 hostels in New Zealand and has more than 50 in its New Zealand network. But he was cautious about the coming months: "It's difficult, no one is being very bold in their predictions. I think people are anticipating a strong ski season."

Motel Association chief executive Michael Baines said motels were experiencing a drop in the number of room nights but most were maintaining revenue levels. Those outside of the main centres were doing better as there was less reliance on international visitors.

AIR NZ REPORTS BIG DROP IN PASSENGERS

Air New Zealand carried about 59,000 fewer passengers this April than it did in the same month last year.

Despite the 5.7 per cent decline in passenger numbers to 971,000, the reduced capacity - 12.7 per cent - meant the group's passenger load factor increased 4.5 per cent.

Air New Zealand's monthly investor report also said its short-haul service flew 848,000 people, down 4.7 per cent on last year. With short-haul capacity reduced by 7.3 per cent, the passenger load increased 5.2 per cent.

The long-haul service flew 123,000, decreasing 12 per cent on last year. The airline cut capacity on longer flights by 16.3 per cent, increasing passenger load by 3.9 per cent.

The airline reported some cancellations because of fears over swine flu, though the financial effects were not material, the report said.

Year-to-date yields for the group were up 7.7 per cent, with short-haul flight yields up 2.1 per cent and long-haul flights up 13.8 per cent.

- NZPA