- New Zealand’s tourism sector saw an increase in total border crossings by 9.5% year-on-year, with significant growth in visitors from Australia, China, the USA, and Singapore.
- The hotel sector saw modest growth, with Queenstown leading the way with a 17.2% increase in Revenue Per Available Room (RevPAR), and Christchurch achieving robust growth in occupancy rates.
New Zealand’s tourism and hotel industries showed signs of steady recovery in the summer months of December 2024 and January 2025, with the total number of non-New Zealand residents crossing the border increasing by 9.5% compared to the previous year. Despite still being 11% below pre-COVID levels, there was promising growth in visitors from Australia, China, the USA, and Singapore.
In terms of hotel performance, there was encouraging growth, with Revenue Per Available Room (RevPAR) increasing by 5.7% compared to the same period in the previous year. Queenstown led with a 17.2% increase in RevPAR, driven by a 14.4% rise in Average Daily Rate (ADR). Christchurch also emerged as a success story, achieving robust growth in occupancy rates, with Room nights sold rising by an impressive 15.4% year-on-year.
In Auckland, the hotel market demonstrated resilience despite an expanding supply of rooms, with room nights sold increasing by 6.5% during the summer period. Rotorua also saw an increase in RevPAR by 11% year-on-year, driven primarily by higher occupancies.
The first two summer months of 2025 reflect cautious optimism for the tourism and hotel sectors. However, challenges persist, with a full recovery of international visitor arrivals now expected by 2027. While economic growth and government-related demand will shape domestic-focused markets, many potential domestic leisure travelers will seek lower airfares to fit their budgets.
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