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Home / Business / Companies / Tourism

A1GP in town but hoteliers not cheering

Tamsyn Parker
By Tamsyn Parker
Business Editor·Other·
20 Jan, 2009 03:00 PM2 mins to read

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The A1GP race has been a good earner for Taupo's accommodation industry. Photo / Daily Post

The A1GP race has been a good earner for Taupo's accommodation industry. Photo / Daily Post

KEY POINTS:

Accommodation providers say the drop in corporate hospitality at this weekend's A1GP race in Taupo has also hit their bookings.

A1GP accommodation co-ordinator Glenda Reid said reservations were down 25 per cent on this time last year and it was mainly driven by the drop-off in corporate bookings.

"The corporate side has dropped so that has freed up a lot of the commercial accommodation. A lot of the corporate guys - those bookings aren't there this year. Most stayed three to four nights - that market has gone."

Three big companies had cancelled their bookings in November leaving 150 rooms at the more expensive end to be filled, she said.

Sails Motor Lodge manager Pat Menzies said the reduction in corporate hospitality at the event was being mirrored in the accommodation market. "We are all reasonably busy but no one is booked out."

Menzies said teams staying in Taupo were also booking fewer rooms and staying for shorter periods.

In past years his motel had hosted the Malaysian team and they had booked 18 out of the 19 hotel rooms. They had booked that again for 2009 but six weeks ago they had pulled that back to a minimum of 13 rooms.

"There are lots of us in similar situations."

Menzies said the pattern of booking by New Zealanders had also changed this year.

In previous years, motels were booked out by mid-December for Christmas, New Year and most of January.

But this year only half had been pre-booked, around 25 per cent were booking two or three days in advance and the rest were just walking in off the street.

"There are some very very worried looking people because of the lack of certainty," he said.

"I think on balance everyone is doing reasonably well but there is a lack of comfort that advance bookings provide."

But the good news for those still wanting to attend the event was that plenty off accommodation was still available.

Lake Taupo Accommodation Association president Wendy O'Callaghan said there was an abundance of accommodation leading up to the A1GP that could suit people travelling through.

There were also still rooms available for the peak night on Saturday.

Last year more than 65,000 people attended the event which brought $8 million dollars into Taupo.

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