There had been more certainty since the Covid-19 traffic light setting went from Red to Orange in mid-April, allowing more events to go ahead, Otago Motel Association president Pete Firns said
"There is certainly a recovery in progress, but people are still cautious," Mr Firns said.
"The outlook is positive."
A variety of events were hosted in Dunedin during Queen’s Birthday weekend.
They included the South Con gaming convention at the Edgar Centre, piping and dancing competitions hosted at Otago Boys’ High School and a waka ama regatta on Otago Harbour.
Moana Pool hosted the Neptune Queen’s Birthday swimming meet and hockey’s Mainland Cup was on at Logan Park.
Mr Firns said accommodation bookings were often left until late amid Covid-19 restrictions and uncertainty, but more forward bookings were now coming through.
Hospitality Association of New Zealand’s Otago president Mark Scully said it had been a positive period since the Easter holidays.
University graduations were able to go ahead this year, bringing graduates and their families into the city.
Alexis Motor Lodge Dunedin owner-operator Robyn Higgins agreed business had picked up from about Easter.
"We’re starting to see a bit more sense of normality."
Bella Vista Motel Dunedin reported a busy May.
It had been fully occupied for much of the past month.
