Queenstown accommodation providers suspect the global economic meltdown is a major reason behind the drop in the number of early reservations for the Christmas and New Year period.
Despite many inquiries, only 80 sites were booked by yesterday for the festive time at the family oriented Queenstown Lakeview Holiday Park and the old camping ground on Man St, which was reserved for young patrons.
There were 200 sites at the Brecon St facility and another 200 at the Man St camping ground.
This contrasted with the corresponding time last year, when about 120 sites were booked at Lakeview and about 100 were booked in the Man St camp, Lakeview assistant manager Lovita Karunakaran said.
The Arrowtown Born of Gold Holiday Park, in Arrowtown, also owned by the Queenstown Lakes District Council, was popular with regularly returning families.
However, about 20 out of 200 sites were now booked, compared with 80 or 90 sites at the corresponding time in previous years.
"I've been here five years and the bookings are definitely low," Mrs Karunakaran said.
"I think people are trying to book on the day overnight, rather than in advance. One of the reasons might be the economy is down and people are thinking twice about spending money for the holiday."
Novotel Queenstown Lakeside general manager Jim Moore said he was "quietly optimistic" the hotel would perform at least as well as in the first quarter this year.
The Earl St hotel's target market was tour groups and domestic visitors aged 50 and older.
There was movement in the German, Indian and Chinese markets, but Mr Moore said he was not expecting major recovery from either the United Kingdom or United States.
"In terms of general holdings, most of the hotels are saying it's OK, not fantastic. All of our domestic bookings seem to be pretty strong, New Year's bookings are strong, as they always are.
"We're definitely seeing more people book online and the lead-in times are reducing. Some of our overseas businesses used to book a long way in advance, but what we're seeing is a trend for people booking their own tours a lot earlier to when they're staying."
Mr Moore said Novotel had reduced its turnover of staff and employed up to 110 in the peak season.
The hotel would not be actively recruiting additional employees.
There was a shortage of chefs in the hospitality industry, which could cause issues over the next six months.
Base Queenstown's occupancy was about 70% but was expected to rise to more than 90% during the summer, general manager Matt Hirst said.
The summer season was a late starter compared with previous years and "it can't come too soon".
While the increase in Australian skiers had buoyed the winter months, Mr Hirst was anticipating a decline in backpackers from the United Kingdom.
"I think it comes down to they, or their parents, not having the money. Numbers are solid for backpackers flying into Australia, but they may not have the extra money for the ticket to New Zealand."
Mr Hirst said the lower Shotover St hostel had 40 mostly long-term staff and would not be actively recruiting for the summer season.
