Rotorua tourism surge boost for city hotels

Rotorua Mud pools. Photo supplied by Rotorua Tourism

Rotorua hotels are cashing in on an emerging tourism boom across the country, with occupancy rates the highest they have been since 2009.

According to the latest Hotel Research and Forecast Report released by Colliers International, the boom is helping the New Zealand hotel sector recover from five years of modest growth, with a resurgence of demand stimulating increases in occupancy and room rates.

International visitor numbers increased 7 per cent to 2.75 million for the year ending January 2014, well above the long-term average of 3 per cent.

In Rotorua, hotel occupancy has increased from 61 per cent in 2009 to 68 per cent by the end of 2013.

In the same period, average room rates across all hotels in Rotorua have fallen $5 to $101 since 2009.

Sudima Lake Rotorua general manager and Rotorua Hotel Council chairman Gert Taljaard said it was a pleasing result.

"The destinational marketing efforts are starting to bear fruit in domestic as well as a number of overseas markets and we need to continue to work towards ensuring that the value brought by visitors also continues to grow.

"The hotels in our city continue to invest in the product on offer and, as a result, we are able to provide a fantastic visitor experience to a wide variety of travellers," he said.

Colliers national director of hotels Dean Humphries said the New Zealand tourism market had caught the eye of international visitors and their numbers were surging.

Destination Rotorua Marketing's "Famously Rotorua" advertising campaign had also been bringing in more domestic visitors, mainly from the Auckland region.

Mr Humphries said awareness was building about New Zealand from accomplishments such as The Hobbit trilogy and singing sensation Lorde.

"We are also receiving a boost from the surge in global demand for our dairy products, the $30 billion Christchurch rebuild, the Auckland residential housing boom and improvement in economic conditions," he said.

"After an 18-month period of reduced transactional activity, we are now also seeing a significant increase in inquiry in our key hotel markets, and this will lead to increased activity in the sector."