Guests appear to checking out of rather than checking in to the country's accommodation providers, with Otago recording the second biggest drop in guest nights in the country.
Figures released by Statistics New Zealand (SNZ) show total number of guest nights at 2.2 million, down 5% on September last year.
September was the fourth consecutive month in which total guest nights decreased when compared with the same month the previous year, SNZ said.
Of all the accommodation types, motels had the largest decrease in September compared with a year earlier, with a fall of 77,000 guest nights or 9%.
That was followed by backpackers, down 28,000 guest nights, also a 9% drop.
It was the fourth consecutive month in which motel guest nights fell compared with the corresponding month a year earlier, and motels accounted for almost two-thirds of the total decrease in September, SNZ said.
Regionally, Bay of Plenty had the largest fall, with a drop of 38,000 guest nights or 17%; Otago was next with a fall of 24,000 or 7%; Waikato was down 19,000 or 10%; and Auckland dropped 13,000 or 3%.
Wellington had an increase of 2000 or 1%, and Southland was up 1000, also 1%.
Several hotel and motel managers told the Otago Daily Times the situation would worsen because of the economic crisis.
Tourism Dunedin chief executive Hamish Saxton said with a reduction in international tourist numbers affecting accommodation providers, the domestic and Australian market was becoming increasingly important.
"A few people have advised me some of the months are beginning to look a bit shaky."
