Vacancies 'disaster' for motels

Less holidaymakers are booking rooms and park sites. Photo / Sarah Bennett

Bad news for the nation's moteliers may be good news for holidaymakers with record numbers of rooms still available for people to book their summer break.

Moteliers are describing this holiday season as "disastrous" and "the worst yet" because of a dramatic drop in occupancy.

Statistics NZ figures show the number of holidaymakers booking accommodation in motels, backpackers and holiday parks is down for the start of the Christmas period.

Norm Castle, owner of Cook's Lookout Motel in Paihia, Northland, said this month his motel had seen a 33 per cent drop in income on last year. "I have been here eight years and this is the worst it's absolutely dire."

Other moteliers he had spoken to had experienced the same.

"Other businesses in Kerikeri - where they rely on people who are travelling - are massively down. So there's no end to the recession up here.

"The whole of the North Island is a bit drab. And we've got friends on the South Island and they've had no business at all this month.

"Friends of ours travelling from the UK were staying in Kaikoura. The first night they were there, they were the only ones there and the second night there was just one other couple there. It's just unheard of."

The statistics show occupancy for hotels was up by 4.3 per cent in October compared with the same time last year. Total guest nights around the country were down for the same month. Motels were down 5.4 per cent.

Castle puts that down to "a different market". Hotels usually take advantage of tour packages, something motels aren't in a position to do.

Expedia.co.nz is advertising 20 per cent discounts on Christchurch hotel rooms.

Castle blamed the recession for the low occupancy rates. "People just don't want to spend money."

The industry had expected that this season would pick up but instead it has been the worst he's seen since immigrating to New Zealand from the United Kingdom and starting his business eight years ago.

"What happened two years ago when the recession started to hit - the holiday parks were just full. There was a massive move into the cheaper accommodation and that affected us as well. But now they're not getting anything, either."

The strength of the Kiwi dollar was also having a negative impact on tourism, he said, adding: "It's artificially high."

He said as long as overseas travellers felt they weren't getting a good deal in New Zealand, they wouldn't be holidaying here.

Neil Wilson, of the Tuscany Villas Motor Inn in Rotorua, said he, too, had experienced lower occupancy rates. "Well, it's a recession on."

But he said moteliers weren't in a position to lower prices and give better deals because their margins wouldn't allow it. They were best to keep trying to fill the rooms.

He and Castle said some customers had tried to screw them down on price because consumers were used to bargain sales in stores.

"But we can't lower our prices. A retail store has a much higher mark-up than motels do."