Tourism is a leading export earner and driver of economic growth for New Zealand, directly contributing $12.9 billion or 5.6 percent of New Zealand’s GDP.
New Zealand’s Tourism sector is currently in the midst of its strongest ever growth cycle, with several consecutive years of arrival growth and international visitor arrivals. In fact, international tourism expenditure has more than doubled since 1999.
Given its location, New Zealand is a niche tourism destination. The country is experiencing strong growth in visitor arrivals and hotel room nights; this growth is driven by increases in international air capacity, a growing domestic market, and the country’s global reputation as a beautiful, clean and friendly destination.
The outlook for tourism continues to be bright, with official estimates of 4.9 million international visitors, and a projected annual international visitor spend of $15.3 billion, by 2023. Our spectacular landscapes and natural scenery are world-class and ensure our tourism value proposition remains strong – we know this is the most important reason why people choose to travel to New Zealand.
As the Tourism sector grows, as higher-value visitor segments become the norm, and as New Zealand becomes known as a year-round visitor destination, it is important that New Zealand keep up with tourism numbers.
The Government’s Investment Attraction Taskforce is committed to supporting tourism by contributing to the right infrastructure being developed – in particular, focusing on good quality hotels to ensure there is sufficient capacity to meet our tourism growth.
As such, there are many opportunities for investors – including building the right type of accommodation across seven of our key commercial and tourism centres, to meet the expectations of our growing higher-value visitor segment.
A shortage of hotel rooms during peak demand periods, combined with a reducing seasonality pattern and limited supply pipeline, is creating a need for additional hotel development in key markets like Auckland, Rotorua, Taupō, Wellington, Christchurch, Queenstown and Dunedin.
Top visitor destinations demonstrate strong hotel trading fundamentals, reflected in impressive annual occupancy rates of around 80 percent and outstanding room rate growth.
Furthermore, New Zealand is a safe and stable investment destination that offers attractive returns for hotel investors, underpinned by strong tourism growth and GDP performance, a business-friendly tax environment, and prudent fiscal policy.
Hotel Development Feasibility Study Grants
The Hotel Development Feasibility Study Grants programme is administered by New Zealand Trade and Enterprise (NZTE). The programme is used to support the development of new hotels suitable for New Zealand’s rapidly expanding international visitor market.
It is available to qualified New Zealand and overseas businesses looking to develop or expand significant hotel operations in New Zealand that fit within NZTE’s criteria.
The Fund provides grants for pre-feasibility and/or feasibility studies so that potential investors can qualify substantial investment opportunities.
For more information, contact our Investment team.