Events help fuel tourism

A pipeline of events is crucial to driving the recovery of hotels in New Zealand, but that sort of investment will benefit local businesses too, one of the country’s biggest hotel operators says.

The hotel industry went through some tough years over the course of the Covid pandemic, due to the loss of international visitors. Some hotels had to close, and then, once the borders reopened, the industry was faced with a shortage of workers.

But now tourists are returning, and after a strong summer trading period, even stronger demand was expected this year, according to Colliers’ latest hotel market report.

The reopening of key markets, such as China, wider pent-up demand, and the upcoming Fifa Women’s World Cup were factors in this, it said.

‘‘Tourism NZ has forecast international visitor levels to rebound to around 2.5 million by the year ending September, with a general view that inbound numbers will now reach preCovid levels, of around 4 million, by as early as 2025.’’

Accor Pacific chief executive Sarah Derry said New Zealand was a world-class destination, and would continue to be for the foreseeable future, so the industry was preparing for that demand now. Her company was opening three new hotels in Auckland, one in Lower Hutt and one in Queenstown, this year, which would bring an additional 559 rooms onto the market.

Accor Pacific already had 44 hotels around New Zealand through its brands, which included So Sofitel, Sofitel, Peppers, Sebel, Movenpick, Novotel, Ibis and Mercure.

Derry said there was the potential for strong growth, and the company had observed some gaps in the market, and differences in the way people travelled that it was keen to cater to. ‘‘The Covid years impacted on how people travel, even if it’s for business.

They often want more of an experience of their destination, and tend to stay longer. Some business travellers bring their family too.’’

People had become more educated around hotels and experiences, and they wanted choices, she said. ‘‘Business and leisure travellers want different things, so we have developed brands aimed at those different needs, as it gives people the opportunity to chose what suits them best.’’

Two of the company’s new Auckland hotels, Jo&Joe and Tribe, which would open in the CBD in the third quarter of this year, were aimed at leisure travellers. They would be less about the room size, and more about the lifestyle amenities, so the focus would be on the common spaces and the food and beverage options, she said.

International travellers were keen to experience what a country, or city had to offer, but they were also attracted by events of all types, and a vibrant local arts and entertainment scene, Derry said.

‘‘We have learnt that cities need to ensure a strong pipeline of events, big and small, and they need great art galleries, and the like too. It is critically important as it draws people in, and it is good for local businesses too.

‘‘But there needs to be ongoing investment to make sure events keep coming, and local councils should also be supporting cultural things, such as Art in the Park in Auckland. It puts a global focus on New Zealand as a great place to visit.’’

This also applied to cities such as Wellington and Christchurch, with big conference centres trying to attract more business travellers, she said. ‘‘There is growing interest in New Zealand as a conference destination, and also from international travellers wanting to incorporate both New Zealand and Australia into one trip.

‘‘At the same time, more Australians, who previously might have gone further afield, are looking to New Zealand as a travel option that is closer to home.’’