Otago accommodation providers are preparing for a tough winter, with a double-digit drop in accommodation guest nights in February compared with the previous year, and worse predicted.
Accommodation providers in the region recorded a 10% drop in February, or 49,000 fewer guest nights, on the corresponding month last year, according to a Statistics New Zealand accommodation survey.
Nationally, guest nights were down 8%, with all 12 regions recording fewer guest nights.
Short-term overseas visitor arrivals declined 24,000, or 9%, compared with February 2008, with Otago recording the biggest decline in international guest nights - 56,000, or 18% fewer international visitors than in the corresponding period last year.
Otago also led the way with occupancy rate declines, recording a 13.2% drop, the only region to record a double-digit decline.
Otago Motel Association president Neville Butcher said Dunedin was not faring as badly as other areas of Otago, with massive declines in the Queenstown Lakes area skewing the figures for the region.
On average, Dunedin moteliers saw about a 5% drop in guest nights in February, but the monthly guest night numbers in March were on par with 2008, he said.
Motel Association of New Zealand chief executive Michael Baines, of Wellington, said a reduction in coach tours had affected Queenstown, but Wanaka, Alexandra, Cromwell and Dunedin had fared better.
"There is an oversupply of rooms and not enough demand [in Queenstown]."
However, backpackers and holiday parks in general continued to prosper.
Winter months were always quieter and most motel owners were doing well, he said.
Mr Butcher said he did not know of any motel owners struggling to survive, but there was "concern for the winter months ahead".
However, an industry domestic marketing campaign being developed with Tourism Dunedin would hopefully bring more people to Dunedin.
Tourism Dunedin chief executive Hamish Saxton said anecdotal evidence showed people were leaving their bookings to the last minute, which could make it difficult to predict occupancy rates.
