Occupancy at Queenstown hotels has increased and so also has the average price.
Colliers International's Hotel Market Revival research report, released this month, shows that occupancy at Queenstown hotels has increased from 63% in 2009 to 67.1% for the year to September 2013.
Average room rates across all hotels in Queenstown rose from $132 to $146 over the five-year period to September 2013, a 10% increase.
The report also said all key markets in New Zealand are performing performing well this year.
Auckland hotel occupancy was up 5% to 78%, room rates were up $4 to $137, compared with the same time last year, and a similar trend was evident in Wellington and Rotorua.
Rotorua and Queenstown recorded the highest growth in occupancy for the year to date September 2013, up 7% and 6% respectively.
Although international visitor arrivals to New Zealand increased by just 1% to 2.7 million for the year to August 2013, the report said the hotel sector had shown ''solid improvement in trading performance''.
''This is due to a number of factors, including the residential housing boom, general improvement in economic sentiment, one-off events, a change in visitor origin and the cruise ship industry.''
There needed to be ''significant growth in room rates'' before new hotels were financially viable but the report noted ''the planning of new convention centres in Christchurch and Queenstown may be the catalyst for a new wave of hotel accommodation in these centres''.
