Rotorua needs more accommodation, particularly at the higher end. That’s the view set out in a new report released by New Zealand Trade and Enterprise which named Rotorua among the locations with a significant shortfall of available rooms. It’s a view shared by Rotorua Mayor, Steve Chadwick and other industry experts.
With the annual demand for room nights in Rotorua expected to increase over the next 10 years by 37 per cent, Chadwick said that having a five-star property in Rotorua would complement the other accommodation options Rotorua already has.
Dean Humphries, national director of Colliers International’s Hotels division, said the rapid rise in international tourists to New Zealand in recent years meant there was a critical shortage of hotel rooms in key tourism destinations such as Rotorua.
The growth in Rotorua visitor numbers is expected to be driven by the confident international tourism market and in particular the strong growth in Chinese visitors to New Zealand. Their fondness for Rotorua will directly translate to a greater demand for Rotorua accommodation.
Another of the key drivers for developing higher-end accommodation in Rotorua is the big investment already planned for visitor attraction projects over the coming three to five years.
Economic Development Minister Steven Joyce said the push for more tourist accommodation was about attracting investors, both internationally and domestically.