North needs more hotels

New Zealand needs more hotels to meet tourist needs. Whangarei is well-placed to site one of those hotels, according to an economic development expert.

New Zealand is in desperate need for more hotels and tourist dollars will go begging if that need is not met.

Whangarei District Council economic development manager Peter Gleeson, who attended the recent national hotel conference, said Whangarei had a role to play in meeting that need.

The conference was told that nationally an extra 26 hotels or about 4500 rooms are needed in the next decade to cope with the visitor boom driven by New Zealand's growing international appeal and the proliferation of inbound air services, particularly from China.

"Whangarei district, including tourist spots such as at Bream Bay, Heads, Tutukaka Coast, Old Russell Road, need to grab a share of those 4500 rooms," Mr Gleeson said.

"New Zealand risks losing international visitors if hotels are not built urgently. Visitors won't come if they have no or perceived overpriced accommodation.

"A hotel in Whangarei will help to satisfy the overall national shortfall of accommodation and it would also enable Whangarei to continue to bid on major events for the region."

He said an analysis of the NZ hotel sector indicated unprecedented demand for rooms in Auckland and warned that chances of finding one would get even tougher next year when major events (Lions Series, Masters games, Rugby League World Cup) are held in the city.

He added Whangarei could enjoy some flow-on effects from this "although we should not just expect to benefit from default overflow".

Mr Gleeson said Whangarei readily served up to Qualmark four-star standard, "however we also need to cater for the next tier demand".

"For sustained financial viability, non-resort destinations such as Whangarei need a mix of target clients to reduce risk, such as international and domestic leisure, business and conference [trade]."

There is a definite need for luxury tourist accommodation and Mr Gleeson warns that New Zealand's star rating is on the high side. He cites the Pullman Hotel in Auckland with a five-star rating which would probably rate four at best in the competitive Asian or Middle Eastern market.

"Over the short term, Chinese visitor numbers are set to increase from 7 per cent to 15 per cent of annual inbounds, still in tour groups but more are becoming free, independent travellers with generally high net worth, who prefer to stay in branded accommodation with a certain level of status," he said.

He expects the rise of wealthy Indian travellers to be the next wave seeking luxury accommodation in NZ.

Mr Gleeson believed the country needed to market beyond the traditional five hotspots and promote destinations such as Hobbiton (Matamata) and the Len Lye Centre (New Plymouth).

The Hundertwasser Arts Centre (HWAC) could be the lure to attract domestic and international visitors, increase guest night numbers and ensure the financial viability of a hotel in Whangarei. "At last week's New Zealand Hotel Industry Conference 2016, PM and Minister of Tourism John Key stated that Whangarei and the HWAC were examples of distinctive attractions to draw visitors to the regions of NZ," Mr Gleeson said.

He added there had been recent renewed interest in Whangarei by developers/operators after the Government's contribution to the HWAC project, proximity to Auckland and the Bay of Islands.

"One developer [who] has purchased a site is currently undertaking feasibility research for a 80-room hotel.

"The proposed HWAC will be a point of difference. Cruise ship passengers tendered off in the BOI already bus to Kawakawa to visit the Hundertwasser toilets.

"HWAC would provide a reason to visit Whangarei and potential to stay. Cruise ships would be able to berth at Marsden, providing quicker disembarkation.

"A hotel provides stepping stones around the Twin Coast Discovery Highway; plus a stopover on the way to Carringtons for the Chinese."

All standards of accommodation are important and any level of accommodation provider would create jobs.

"The rule of thumb is one job per every two rooms but jobs are also created indirectly in the food and beverages industries, in laundry, transport and other ancillary suppliers."

Mr Gleeson said ironically there was a national shortage of professional hospitality industry trained people. "We rely heavily upon foreigners to fill gaps."