Changing international traveller demographics are expected to benefit Rotorua's hotel sector.
New Zealand Hotel Council independent chairwoman Jennie Langley presented the organisation's annual operating survey to members and tourism operators at the Novotel yesterday afternoon.
It showed fewer travellers arriving from traditional long-haul, long-stay markets and increased shorter-stay visitors from the rebounding
Asian markets.
"In terms of market segments, Rotorua does tours and groups well and are up on the national average."
More than a third of the city's visitors came from that market compared with 18 per cent nationally.
Research company Covec highlighted tourism trends, including a slowing of growth in Australian arrivals, a drop off in the "visiting friends and relatives" market and a significant rebound in Asian markets. The conferences and incentives market also shows signs of coming back. Covec's Shane Vuletich said this was a sign of increasing confidence.
"We are not back to the level where people are throwing Monopoly money around, but we are now coming back to a sensible level of activity."
Overall, Rotorua's occupancy was still down on many centres and he said the city had probably "ridden the rollercoaster" more than most regions.
"That is largely a product of your high-profile among markets heavily sensitive to shocks [such as the SARS outbreak, the global financial crisis and the swine flu pandemic]. "The good thing is that you have bounced back fairly strongly."
Langley welcomed the return of the Chinese and South Korean markets, saying these provided a boost to hotel occupancy levels.
Rotorua's average room rate remained low, but she said reductions had been less extreme than in other centres because few changes in capacity allowed the sector, and room rates, to stabilise. Langley also commended hoteliers on their ability to cut costs and offer competitive rates to independent travellers, who travel by budget airline and expected to get "good deals".
For Rotorua NZHC members, the average annual operating cost of each room was $31,200, compared with a national average of $37,300.
