New data released by Hotel Data New Zealand (HDNZ), part of Tourism Industry Aotearoa (TIA), has revealed how hard the COVID-19 pandemic hit hotel revenues in Aotearoa in 2020, with overall room income falling by 40 percent.
TIA Chief Executive Chris Roberts says the research includes data from hotels providing border isolation services, but the income from those services has only "softened" the impact of COVID-19.
"Nationally, average hotel occupancy had sat at around 80 percent since 2016, until the COVID-19 pandemic hit and our borders were closed," says Roberts.
"Average occupancy in 2020 barely made it to 50 percent. The average rate for a hotel room also slipped, and these combined factors resulted in a 40 percent fall in the average revenue per available room to just $91.17.
"At those revenue levels, the majority of hotels which remained open in 2020 were operating at a loss."
The report shows the substantial fall in income occurred across all regions and all hotel categories.
- 3-star hotels average revenue per available room fell from $95 in 2019 to $50 in 2020
- 5-star hotels average revenue per available room fell from $214 in 2019 to $123 in 2020
Regionally, the biggest decline was in Queenstown, where average hotel occupancy fell from 82 percent in 2019 to 42 percent in 2020.
Roberts says hotels are grateful for the support of domestic visitors along with business and Government guests.
"However, many will be relying on at least a partial reopening of the borders to be able to return to profitability."