The New Zealand market is not without its challenges, and a unified approach to industry representation at government level could have a powerful impact, writes The Ascott Limited Managing Director – Australia, David Mansfield.
In New Zealand, we’re navigating a landscape filled with both challenges and promising opportunities. Consumer sentiment has been a bit hesitant, and we did experience a slowdown in demand during the second quarter. However, we’re now seeing encouraging signs of recovery, with business bookings picking up as we move into the latter half of the year. I’m confident that we’ll end the year on a positive note.
On the development front, we face some significant challenges. The costs associated with new developments have risen due to tighter lending conditions and a more stringent regulatory environment, making it tougher to pursue Greenfield opportunities. Despite these hurdles, we recently celebrated the opening of Quest on Kilmore on July 14, which was a significant milestone for us. It’s always exciting to expand our presence, and this new opening reinforces our commitment to growth in the New Zealand market.
We continue to see success across our network, particularly with the Quest brand, which has remained resilient in the corporate travel market. Our properties are performing well, with solid occupancy and rate performance. This success is a testament to the hard work of our Quest franchisees and the strength of our business model.
Looking ahead, we have several exciting opportunities in the pipeline. We’re closely monitoring the market and are optimistic about the potential for further growth as the economic fundamentals in New Zealand improve. We’re also committed to expanding our footprint, exploring new locations, and continuing to deliver exceptional experiences to our guests.
One area where I believe we can make a significant impact is in industry representation. In New Zealand, we see a gap compared to the more structured advocacy landscape in Australia. I strongly believe that having a unified member advocacy organisation is crucial for achieving balanced outcomes that benefit both our sector and government. Effective advocacy is essential for the long-term sustainability and growth of the accommodation industry in New Zealand.