Motels miss out on expected Rugby World Cup boom

The Motel Association is optimistic that the cup will stimulate visitors to travel around New Zealand in the future. Photo / Dean Purcell

Motels have seen a drop in business during the Rugby World Cup and are attributing it to locals not travelling because of "rugby festivities" and fears of overpriced accommodation.

Motels and hotels increased rates, some by up to 15 times, in anticipation of a boom during the tournament, but a Motel Association survey found nearly half of its members reported lower bookings than usual.

"Many Kiwis are choosing to stay at home during the World Cup, with reports of floods of overseas tourists and overpriced accommodation proving a deterrent to domestic travel," said association chief executive Michael Baines.

"With the exception of motels in Auckland and Wellington, those in cities which had no opportunity to play host to any of the games [have been] hit the hardest."

The survey of 175 motels New Zealand-wide found 48 per cent said business had been poorer than usual during the Rugby World Cup.

Only 28 per cent reported an increase in business, and nearly 60 per cent reported a drop in the number of domestic visitors with only 14 per cent experiencing a rise.

"Any motel with a commercial or domestic component around it has struggled, and certainly around the South Island it's been really quiet."

Mr Baines said overall business had been about 20 per cent down on the same period last year, and estimated that to be between $15 million and $25 million in turnover losses.

Auckland mother of two Lisa Boyd, who usually takes her family on a New Zealand road trip during the spring break, will not be doing so these school holidays.

"It's probably a once-in-a-lifetime experience to have the Rugby World Cup here, and it just makes more sense to enjoy the rugby festivities in Auckland than to be driving around the country," said Mrs Boyd.

Neil Barker, owner of Manukau Motor Lodge, said he increased accommodation rates by about 18 per cent, hoping for a cup windfall, but instead suffered a "rather significant" drop in bookings.

"The corporates are staying away and the locals are not travelling, so we have been left with vacancies throughout the competition period."

Mr Barker said more fan zones should have been set up in areas outside the central city to ensure a more even distribution of fans, so motels outside the main centres would not suffer.

But the Motel Association remains optimistic that things will go right for motels in the long term.

"In all major sporting events, even the likes of Fifa World Cup, there's always an expectation it's going to be full, but the reality is that it never is," Mr Baines said.

"I think the Rugby World Cup has made New Zealanders see the country through the eyes of international [visitors], and realise what a fantastic place this is, and hopefully it will stimulate them to travel around New Zealand in future."