Accommodating times: Strong demand from international tourists boosts industry revenue

Increased tourism activity in New Zealand has boosted revenue for the Hotels and Resorts industry over the past five years. Industry players have benefited from increases in domestic tourist visitor nights, international tourist visitor nights and business tourist nights over the period. Increased tourism activity has boosted the potential pool of guests for industry operators. However, intensifying competition in the accommodation sector has limited industry growth over the past five years. In addition to competing among themselves, industry firms are increasingly facing competitive pressures from serviced apartment operators and properties listed on accommodation-sharing network Airbnb. Despite these challenges, industry revenue is expected to increase at an annualised 2.2%...read more.

Industry Statistics & Market Size
Revenue
$1bn
Annual Growth 13-18
2.2%
Forecast Growth 18-23
Profit
Employment
9,998
Businesses
408
Market Share of Companies

Industry Threats & Opportunities

  • Increasing tourism activity is boosting the potential pool of guests for industry operators
  • Industry-wide profit margins are growing, due to rising hotel room occupancy rates
  • Growing tourism activity is likely to boost industry demand over the next five years
  • Industry Report - Starting a New Business Chapter

    The Hotels and Resorts industry is characterised by moderate barriers to entry, and these have remained steady over the past five years. While the regulatory measures set in place to establish industry operations are low, potential players can face significant start-up costs. The setup of a hotel or resort can be costly, with capital investment needed for purchasing the land, constructing the property and outfitting the establishment. These costs can be lowered if the player enters into a management agreement with a commercial property owner, such as C.P. Group. However, these potential players are likely to face high rent costs, particularly in Auckland and Wellington. The...purchase to read more.

    Additional Insights for the Hotels and Resorts Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Hotels and Resorts Industry are

  • Proximity to key markets
  • Having a loyal customer base
  • Access to highly skilled workforce
  • IBISWorld analysts also discuss how external factors such as Domestic tourist visitor nights and International tourist visitor nights in the Hotels and Resorts industry impact industry performance..

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    What's in this report

    What is the Hotels and Resorts in New Zealand Industry?

    Industry players operate hotel and resort accommodation. Most industry operators also generate revenue by providing additional services, such as selling food and beverages. Industry establishments are typically more expensive than other accommodation options, such as motels, due to the greater number of facilities and amenities on offer.

    Industry Products
  • Luxury accommodation
  • Other accommodation
  • Food and beverages
  • Other products and services
  • Industry Activities
  • Hotel operation
  • Hotel management
  • Resort operation
  • Resort management
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Domestic tourist visitor nights
  • International tourist visitor nights
  • Business tourist nights
  • Consumer sentiment index
  • Real household discretionary income
  • International travel by New Zealanders

  • Current Performance
  • Revenue and profitability
  • Increasing tourism activity
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Revenue and profitability
  • Luxury hotels
  • Industry structure
  • Table: Hotels and Resorts Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Hotels and Resorts Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Travel Agency and Tour Arrangement Services in New Zealand
  • Consumers in New Zealand

  • Key Selling Industries
  • Commercial and Industrial Building Construction in New Zealand
  • Liquor and Tobacco Product Wholesaling in New Zealand
  • Meat, Poultry and Smallgoods Wholesaling in New Zealand
  • Textile Product Wholesaling in New Zealand

  • Products & Services
  • Other accommodation
  • Luxury accommodation
  • Food and beverages
  • Other products and services
  • Chart: Hotels and Resorts Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Domestic leisure travellers
  • International leisure travellers
  • Business travellers
  • Other travellers
  • Chart: Major Market Segmentation for the Hotels and Resorts Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Hotels and Resorts

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Hotels and Resorts Industry

  • Industry Globalization
    Millennium & Copthorne Hotels New Zealand Limited,
  • Table: Millennium & Copthorne Hotels New Zealand Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Hotels and Resorts Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Hotels and Resorts Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Airbnb
  • An accommodation-sharing network that allows individuals to rent out their property (or room in their property) to travellers.
  • Inbound Tourism
  • The act of a non-resident visiting a country, which in this case is New Zealand.
  • Outbound Tourism
  • The act of a New Zealand resident visiting another country.
  • Zero-Hour Contracts
  • A work contract where the employer is not obliged to provide minimum working hours. In addition, the employee is not obliged to accept any work offered.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Hotels and Resorts in New Zealand market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Hotels and Resorts in New Zealand:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Hotels and Resorts in New Zealand market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Hotels and Resorts in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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