Bleak outlook for NZ hotels

Bleak outlook for NZ hotels

Business confidence among New Zealand’s hotel sector is much bleaker than business confidence in general, according to a new survey.

The New Zealand Hotel Market Sentiment Survey was undertaken by Horwath HTL and Tourism Industry Aotearoa to examine how the Covid-19 pandemic is affecting hoteliers’ outlook for the New Zealand hotel market in general and their hotel in particular; 115 hoteliers responded to the survey which was carried out between 30 April and 5 May 2020.

Forty percent of respondent hotels are already fully closed and with little prospect of New Zealand’s borders opening to international visitors any time soon, the outlook for the next two years is bleak. Seventy three percent of respondents expect that trading conditions for their hotel in 24 months’ time will have deteriorated compared to 2019.

These results equal a business confidence score for the two year period of -64% (percentage expecting improvement minus percentage expecting deterioration). 

ProMag