Alert Level yo-yoing likely to be the new norm
Covid-19 alert level extensions and regional variations could be around for some time making hotel books even more fickle.
We’ll see a spike in travel now that airlines can operate a full capacity after the lifting of social distancing requirements. This is promising for hotels in the lead-up to the September school holidays, but only if Covid can be kept at bay.
While the rest of New Zealand is expected to move to level 1 next Monday (21 September), Auckland will remain at level 2.5 for at least another week and a half, then restrictions on social gatherings could be eased if the Covid clusters are maintained.
The government will make a final decision next Monday.
See here for alert level details
Shape New Zealand’s Tourism Future
New Zealand’s Tourism Futures Taskforce is seeking your views on what the future of our tourism industry should look like.
Every crisis creates opportunity, and now is the time to input and help develop tourism’s long-term vision and the pathways we need to get there.
The World Tourism Organisation has estimated there’s been an 80 per cent decline in international tourism in 2020. When our borders open competition for the international travel dollar will be fierce. It’s important we get this right and that includes absolutely no more ludicrous bed tax proposals.
NZHOA board member Karl Luxon, Vice President Operations Millennium & Copthorne Hotels, is representing our best interests on the taskforce advisory panel. He reports that the first one day session held recently was highly constructive with a lot of ground covered and a particular focus on social licensing, technology and various lines of funding.
Share your views here by 5pm Tuesday 22 September 2020.
Our advisory role to the taskforce is an opportunity to raise the profile of hotels and the vital part we play in New Zealand’s economic prosperity, as well as influence policy and regulatory reform.
August Hotel Occupancy
Overall hotel occupancy for August is sitting at 46 per cent, compared to 80 per cent for the same period last year with RevPar $82.90 compared to $138.82 in August 2019.
View latest stats here:
Consumer confidence at lowest level since GFC
The number of Kiwi households who think it’s a good time to make a major purchase has fallen to lows that we’ve only seen twice in the last three decades.
The Westpac McDermott Miller Consumer Confidence survey for the September quarter shows consumer confidence has fallen 2.1 points to 95.1, its lowest point since 2008.
GDP figures out tomorrow are likely to show the economy back at 2015/16 levels, showing the impact of the March and April lockdown.
International tourism and foreign students have contributed about 5 percent of GDP in recent years, but until restrictions are eased or lifted the loss of that income will be an economic headwind.
New Auckland hotels bring competition to new heights
Around 1500 hotel rooms will be added to Auckland’s stock by the end of the year, increasing competition for our limited domestic market.
Park Hyatt Auckland hotel opened yesterday, the Hotel Britomart is set to open in October, and QT Auckland and Sudima later this year.
Moving away from Isolation Hotels
While Ministry of Health contracts with isolation managed hotels have by no means benefited our entire sector, it has certainly generated business that we wouldn’t otherwise have.
Now there’s talk of moving away from hotels to a purpose-built managed isolation facility given pandemics are set to be a permanent future fixture.
Following NZHOA concerns about the reputation of our hotel sector, fortnightly meetings are now underway with Dr Megan Woods, Minister in charge of managed isolation facilities.
There’s mutual understanding that operating procedures are complex given we’re working in unchartered territory. Our ongoing discussions with Minister Woods enable us to raise issues at the highest levels with outcomes then fed into associated DHBs, MoH and MBIE.
The government is appreciative of the work hotels and hotel staff are doing in preventing the rampant spread of Covid-19.
While hotel have borne the brunt of negative publicity, there have also been many positive experiences captured such as this colourful account of life in isolation at Auckland’s M Social.
COVID-19: Information for businesses is the government’s central resource to help businesses with updates about COVID-19 and guidance.
Unite Against COVID-19 is the central place for information from the New Zealand Government about COVID-19, including information on financial support that is currently available and requirements for businesses at different alert levels.
The Ministry of Health provides the latest updates, information and advice on COVID-19, including public health guidelines for businesses and services.
Join NZHOA so we can continue to be a strong industry voice representing the real issues our sector faces as we work together to get through Covid-19 and out the other side.
New Zealand Hotel Owners Association
021 399 544