Rotorua moteliers are dreading the prospect of empty rooms during the Rugby World Cup after a package deal expected to bring $3 million into Rotorua fell through.
Two months ago, a tour and accommodation deal between North American tour company Great Atlantic Travel, New Zealand tour company Navigator Tours and the Rotorua Association of Motels was called off after Great Atlantic Travel failed to sell enough tickets.
The deal was expected to boost business in Rotorua and fill 1000 motel beds.
Steve Osborne from the Rotorua Association of Motels said some moteliers had booked out their rooms during September in anticipation of the North American tour groups coming. Now they are desperate for customers.
Mr Osborne, who owns Alpin Motel, said despite keeping his prices the same during the Rugby World Cup, his motel is nowhere near full.
"We were expecting it [the Rugby World Cup] to be the cream on the cake but reality is we're just facing a normal year."
The deal, which was proposed over a year ago, was supposed to be confirmed in February this year.
Mr Osborne said he thought the reason it didn't work was because people were trying to side-step tour companies and organise better deals for themselves.
Navigator Tours could not be reached for comment.
Santa Maria Motel manager Jason Edworthy was so excited about the deal he checked himself out of a hospital stay a day early in February for an inspection by the tour company representatives.
"We were expecting to be full for up to 19 nights," Mr Edworthy said.
"I'm very disappointed the deal has fallen through and bookings are really quiet."
Mr Edworthy has joined four online accommodation sites in the past two weeks and is running a free bike hire promotion which he hopes will attract more customers.
Rotorua Association of Motels chairman and owner of Asure Palm Court Motel, Glenn Stafford, said he did not have many bookings either but was crossing his fingers for a late rush of those travelling independently.
The latest Fly Buys-Colmar Brunton Mood of the New Zealand Traveller survey showed 20 per cent of New Zealanders taking overnight trips to see a game will stay in motels, motor lodges, bed and breakfasts or apartments.
It also showed 20 per cent of New Zealanders travelling to games are going to Rotorua.
Backpackers and hotels are noticing similar trends to motels but have not yet given up hope.
Cactus Jacks backpackers owner Paul O'Connor said in his experience, backpackers often just showed up without booking ahead so he was cautiously optimistic.
New Zealand Hotel Association Rotorua chairman Fraser McKenzie said hotels had attracted limited bookings for the Rotorua game periods but he was confident they would be busy.
"We will be looking for a pick-up in September and October but I think people will be coming to see the destination [as] opposed to the games."
While accommodation providers are unsure how things will pan out, the hospitality industry looks set to reap the benefits.
Vice president of the Hospitality Association of New Zealand Reg Hennessy said he thought the event would be fantastic for Rotorua.
Mr Hennessy, who owns Hennessy's Irish Bar and The Shed Bar, was expecting earnings in the cup period to quadruple.
Rotorua moteliers wince as cup deal fails
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