New Zealand’s Tourism sector is currently in the midst of its strongest ever growth cycle, with several consecutive years of international visitor arrival growth. In fact, international tourism expenditure has more than doubled since 1999.
Given its location, New Zealand is a niche tourism destination. The country is experiencing strong growth in visitor arrivals and hotel room nights; this growth is driven by increases in international air capacity, a growing domestic market, and the country’s global reputation as a beautiful, clean and friendly destination.
The outlook for tourism continues to be bright, with official estimates of 5.1 million international visitors, and a projected annual international visitor spend of $14.8 billion, by 2024. Our spectacular landscapes and natural scenery are world-class and ensure our tourism value proposition remains strong – we know this is the most important reason why people choose to travel to New Zealand.
The Government’s Investment Attraction Taskforce is committed to supporting tourism by contributing to the right infrastructure being developed – in particular, focusing on good quality hotels to ensure there is sufficient capacity to meet our tourism growth.
As such, there are many opportunities for investors – including building the right type of accommodation across seven of our key commercial and tourism centres, to meet the expectations of our growing higher-value visitor segment.
A shortage of hotel rooms during peak demand periods, combined with a reducing seasonality pattern and limited supply pipeline, is creating a need for additional hotel development in key markets like Rotorua, Taupō, Wellington, Christchurch, Queenstown and Dunedin.
Top visitor destinations demonstrate strong hotel trading fundamentals, reflected in impressive annual occupancy rates of around 80 percent and room rate growth.
Furthermore, New Zealand is a safe and stable investment destination that offers attractive returns for hotel investors, underpinned by strong tourism growth and GDP performance, a business-friendly tax environment, and prudent fiscal policy.
For more information, contact our Investment team.