Staying power: Larger companies are expanding to capitalise on rising demand from tourists

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 days and international tourist visitor days. Increased tourism activity has resulted in a larger potential pool of guests for industry operators. However, intensifying competition in the accommodation sector has limited industry growth over the period. 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 7.3% over the five years through 2018-19, to reach $1.7...read more.

Industry Statistics & Market Size
Revenue
$2bn
Annual Growth 14-19
7.3%
Forecast Growth 19-24
Profit
Employment
10,095
Businesses
267
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 will likely boost industry demand over the next five years
  • Industry Report - Industry Key Buyers Chapter

    The Hotels and Resorts industry exhibits low market share concentration, with the four largest operators expected to account for less than 20% of industry revenue in the current year. The industry contains a mixture of operating structures, including local subsidiaries of global hotel chains, such as Noahs Hotels, and companies primarily focussed on hotel management, such as AccorHotels. The industry also includes many owner-operators, which are largely based in regional areas where competition is less intense. Rising international travel to New Zealand has encouraged many of the larger players to expand over the past five years. For example, Noahs Hotels purchased the Museum Art Hotel in 2015 for over $25 million. Con...purchase to read more.

    Additional Insights for the Hotels and Resorts Industry

    IBISWorld has determined the most important Key Success Factors for the Hotels and Resorts 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 days and International tourist visitor days 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 days
  • International tourist visitor days
  • Business tourist days
  • 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 (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • 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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