Queenstown hotels needed to focus on adding value and effectively managing costs to remain competitive as demand softened over the coming months, New Zealand Hotel Council chairwoman Jennie Langley said yesterday.
At a meeting in Queenstown, Ms Langley said the state of the economy was the single biggest concern for NZHC members, with revenue coming under significant pressure.
"We know the short-term outlook for many hotels is tough but they cannot lose sight of the eventual economic recovery by continuing to deliver quality product, retaining skilled staff and investing in refurbishments and developments," she said in a statement.
The results of the council's annual operating survey for 2008 were presented to Queenstown members and invited guests, and showed the importance of attracting New Zealanders and Australians to the resort.
New Zealanders accounted for 35% of all rooms sold in the resort last year, followed by Australians at 19.9%.
The survey showed leisure travellers were the biggest source of business for Queenstown hotels, accounting for 47.1% of rooms sold, followed by tours and groups (37.5%).
"Australia and the domestic market will be critical in buffering the industry from lower long-haul international demand.
"Across New Zealand, falling demand for group travel is being felt, particularly from the valuable Asian markets, so the recent announcements by the Government and Air New Zealand of an additional $5 million for marketing in Australia will provide a real boost," Ms Langley said.
Hotels were coming under increasing pressure to offer discounts, but it was becoming difficult to make up the revenue elsewhere and to have funds to invest in the business when the market recovered, she said.
