Occupancy declines in the first half of 2018 have resulted in a significant slowdown in RevPAR growth in all major hotel markets with the exception of Queenstown which still shows strong growth.
A lack of major events across the country on the back of a strong 2017 with the World Masters Games and Lions Rugby tour boosting hotel demand has resulted in a slowdown in international visitor arrivals growth to 3.8% from 10.2% in the year ending June 2017.
Of our top 10 source markets, the UK, Germany and Japan have experienced declines in visitor arrivals in the past 12 months while China, Korea and India have provided double digit growth.
The real impact of this slowdown has been felt in the shoulder and low season months of April and June when visitor arrivals fell by 9.0% and 7.8% respectively and nationwide occupancy rates decreased by 1.1 and 4.0 percentage points.
Nationwide hotels achieved an occupancy rate of 80.6% in the year to June 2018 down 0.4 percentage points on last year and equal with the year ending June 2016. ADRs increased to $194.07 (up 6.1%) and RevPAR increased by 5.7% to $156.50.