Post covid lockdown tourist accommodation data is starting to dribble in and it’s not looking that flash. Anecdotally… the numbers for Banks Peninsula are below those for Christchurch. Christchurch is consistently recording below 25% occupancy (on Google Travel) and the outlook is mixed. (https://www.mbie.govt.nz/immigration-and-tourism/tourism-research-and-data/tourism-data-releases/monthly-regional-tourism-estimates/latest-update/monthly-tourism-spend-grouped-by-rto-and-product-category/ )
But it’s not all bad and there are ways forward. Based on many recent discussions with local accommodation providers, Government agencies (some are specifically set up to provide assistance to the tourist sector) and a constant review of wide-spread pricing schedule reductions as well as a close eye on occupancy rates on the booking channels… My pick is that accommodation that offers something unique, is reasonably priced (say less than $120 on average over the full year for two guests per night) may do better over the next two or three years, but probably still remain at around 50% of pre-covid figures. In view of the fact that we are seeing price reductions on pricing schedules across the board, the $120 rates may be equivalent to the $220+ rates pre-Covid and that is a problem. However, at the top end of the market, much will depend on whether the tourist lured from Auckland on the rest of the North Island can be encouraged to choose Banks Peninsula as a destination. It is also quite possible that whole of house accommodation for the family market will also do well, albeit at reduced pricing levels and significantly reduced occupancy.
One of the problems for many small accommodation providers is that the work involved in preparing for and cleaning up after a one night booking is the same as for a two night booking… at half the income. And when local Christchurch people go away for the weekend they go away for one night rather than two. And that’s quite apart from the fact that the fixed overheads of operating an accommodation business are just that, pretty much fixed. They include the requirement to maintain the facility to the same standard of presentation regardless of occupancy.
Things aren’t looking that rosy for at least another two years, maybe five. And who knows what the culture of tourism on the Peninsula will look like by then. There seems to be an emerging consensus (both in the government tourist bodies and among providers) that we need to change… both the way we operate as a tourist industry and also in the way we engage online.
The exorbitant monthly fees and booking fees must become a thing of the past if the small accommodation providers are to re-open and or remain open. So we as a community need to provide more cost effective alternatives and plug into Government initiatives like the Bonanza extravaganza that is soon to be announced in recognition of the dilemma the industry faces. A change from living off the trickle down effect of the glitz of a burgeoning international tourist sector to a domestic traveler market is enormous for small accommodation providers and all other small business that are part of the sector.
Our local priority must be to give visitors a good reason to stay for longer by making Banks Peninsula as a whole a destination in its own right. That is one of the primary goals we have set out to achieve with www.bankspeninsula.kiwi . Please visit us there for news and updates on the progress we are making with this new community project.