Hospitality representatives are calling the two groups bringing business to Dunedin a perfect combination that complemented each other well.
More than 2100 students will walk across the stage over the six ceremonies this week, with 734 of those crossing yesterday. Many of whom were jouined by friends and family.
Yesterday, students being awarded degrees and diplomas in arts, music, theology, science and applied science, alongside their families and loved ones, made their way through the Dunedin CBD in a large procession.
Afterwards, they filled the tables of bars, restaurants and cafes for the rest of the day.
Seven cruise ships are docking in Dunedin this week, giving an added boost to the hospitality sector on top of the hustle and bustle of graduation celebrations.
Hospitality New Zealand Otago branch president Mark Scully said the increased numbers were affecting the industry in a very good way.
"We are actually busy, it has been tough trading.
"It is a busy time, throwing in cruise ships, graduation and Christmas, but you will not hear many complaints — it will certainly be a nice bonus.
A further two ceremonies will take place on Saturday, so the hospitality sector is set to enjoy a pre-Christmas boost all week long.
Otago Motel Association president and 538 Great King Motel owner Pete Firns said many north Dunedin motels were booked up for the week.
"We are really, really busy and I know the other motels here in the university area are, and I’m sure that’s spreading around the rest of the city as well.
"It’s great to have this half of the month filled with graduation; the university generates a lot of activity for us around the end of November and start of December here."