Growth in international visitor arrivals to New Zealand slowed to 0.7% in 2019 to 3.89 million arrivals primarily driven by a 9.2% decline in Chinese arrivals. Over the past 10 years, international visitor arrivals have increased by a cumulative average annual rate of 4.9%.
Hotel occupancy rates declined in Auckland but remained relatively flat in the other major markets and ADR levels fell sharply in Auckland but were flat or up in the other centres.
With new hotel supply recently opened or under construction in all of our major markets, hotel owners will require improved growth rates in visitor arrivals and accommodation spend in the coming years. While 2020 is expected to be another low growth year, the America’s Cup and APEC are expected to significantly boost demand in 2021.