Steven Joyce –
It is estimated a total of 26 additional hotels, above and beyond what is currently planned, will be needed over the next ten years to meet expected tourism demand in our major tourist centres, according to new independent research released today by New Zealand Trade and Enterprise (NZTE).
The research is a key part of ‘Project Palace,’ a programme to accelerate new private sector investment in New Zealand’s hotel infrastructure led by NZTE and the Government’s Investment Attraction Taskforce.
This is the first time we have had quantified data on the effect that the tourism growth projections will have on hotel occupancy.
This research will be a great help to private investors considering when and where to invest in New Zealand’s fast-growing tourism accommodation industry.
NZTE, Tourism New Zealand (TNZ), and the Ministry of Business, Innovation and Employment (MBIE) commissioned the research report to gain a more accurate understanding of the demand and supply for hotel accommodation now and in the future across peak and off-peak seasons.
Communities benefit
Communities right across New Zealand are benefiting from the unprecedented growth in tourism, and the Government is focussed on ensuring our towns and cities are well placed to host these visitors,” Associate Tourism Minister Paula Bennett says.
The research focused on Auckland, Rotorua, Wellington, Christchurch and Queenstown and shows that, if demand and supply estimates are borne out, the shortfall in new hotel rooms is expected to be up to 4,526 across these centres by 2025, over and above new hotels currently planned. That is the equivalent of 26 hotels the size of the Sofitel Viaduct in Auckland.
While there is significant hotel investment underway and planned, this report underlines the size of the opportunities there are to grow the sector in New Zealand.
‘Project Palace’ work will help match make investors with opportunities, and reduce the time taken to fill information gaps that can slow down investment.
NZTE, TNZ and MBIE are working together with local government and the private sector to identify available locations for additional hotels in each of the five locations studied and to pave the way for attracting new investment in hotel development.
NZTE will be using the research as the basis for a prospectus that outlines the business case for investment in New Zealand hotels to domestic and international investors. NZTE’s strong international networks will be invaluable in approaching international investors with specific opportunities that highlight why New Zealand is a prime destination for quality hotel development.
I have also asked NZTE to catalogue and present hotel opportunities in other New Zealand centres. The tourism industry is growing right across New Zealand and we don’t want individual regions to miss out because investors lack knowledge of investment opportunities.
Multibillion Dollar industry
Tourism is a big part of our diverse, resilient economy, directly contributing $11 billion or almost 5 per cent to GDP. I hope all our regions use this research to identify opportunities in their area
Attracting high-value foreign investment into New Zealand is part of the Government’s Investment Attraction Strategy, and contributes to Government’s Business Growth Agenda target of attracting an extra $160 billion to $200 billion of capital by 2025.
The Regional Hotel Market Analysis & Forecasting Report is available here.
Steven Joyce is Economic Development Minister of New Zealand.
