What's Happening?
New Zealand's hotel market experienced a positive performance in September 2025, with a 10.7% increase in revenue per available room (RevPAR) compared to the previous year. This growth was primarily driven by demand generated from events and increased visitor arrivals from Australia. Major cities and selected regional locations saw higher occupancy rates, contributing to the overall improvement in hotel performance. The increase effectively returns performance to September 2023 levels, following a decline in the previous year.
Why It's Important?
The boost in New Zealand's hotel performance highlights the significant impact of events and international tourism on the hospitality industry. The increase in Australian visitors underscores the importance of regional travel and cross-border tourism in driving economic growth. This trend may encourage other countries to leverage events and international partnerships to enhance their tourism sectors. The positive performance also reflects the resilience of the hospitality industry in recovering from previous downturns, which is crucial for economic stability and job creation.
What's Next?
New Zealand may continue to focus on attracting international visitors and hosting events to sustain growth in the hotel sector. The government and industry stakeholders might explore strategies to capitalize on this momentum, such as marketing campaigns targeting Australian tourists or developing new event offerings. Additionally, the hospitality industry may invest in infrastructure and services to accommodate increased demand and enhance visitor experiences.
