Benchmarking study shows vital role of motels in domestic tourism
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21/07/2012. 16:53
KoreaPost
A benchmarking study of motels highlights the unique role they play in the tourism sector says the Motel Association of New Zealand (MANZ).
Across the country on average 70 per cent of the guests who stay in motels are New Zealanders. This figure rises to 74 per cent in the North Island (excluding Auckland) and drops to 66 percent in the South Island. Statistics New Zealand data shows that motels account for about a third of New Zealand’s total commercial guest nights.
More interesting to note is that international visitors who stay in motels will spend on average $2019 during their stay in New Zealand, compared to $1705 for international visitors who stay in hotels, says MANZ Chief Executive Michael Baines.
“It’s clear that the type of international visitor who stays in motels while in New Zealand are those that stay longer and spend more – the sort of guest we want to see more of,” Mr Baines says.
“And of course the profits generated by motels stays within New Zealand as motels are owned by Kiwis who are dedicated to supporting local businesses,” Mr Baines says.
Motels are less reliant on outside providers for bookings, with 75 per cent of bookings made directly either through the motel’s website, direct contact such as phone or emails, or as a recurring visit.
Motels also play an important role for domestic business travellers, as 38 per cent of guests who stay in motels do so for business, just above the number of those who stay for leisure.
The nationwide average occupancy rate is 56 per cent, which rises to 62 per cent for motels in the North Island outside of Auckland. This higher occupancy contributes to motels in this region being more profitable than those in Auckland or the South Island, according to the study.
In terms of profitability, 4-star motels had the best profit per motel unit, just above 5-star motels. Mid-sized motels of 13-17 units also provided by far the best profits.