The recent status of Covid-19 by the World Health Organisation as a global pandemic is having a significant impact on both the New Zealand and global economy and particularly the tourism and hotel markets.
The short term impact of Covid-19 on the hotel sector has been swift with New Zealand entering a full lockdown on 25 March for four weeks. Our borders are now closed to all international visitors and New Zealanders cannot travel whilst the lockdown is in place.
Despite hotels being classified as ‘essential services’ the only respite for some is the limited demand from aircrew and travellers still waiting to leave New Zealand, together with some hotels being utilised for self isolation or quarantine for returning New Zealanders.
Many hotels have elected to temporarily close or ‘hibernate’ while the lockdown is in place with others electing to remain open and run on skeleton staff. Our research indicates that at least 30 per cent of hotels throughout the country are currently closed.
Whilst it remains early days, it is becoming clear that the post Covid-19 environment for hotels and the wider tourism sector will be vastly different than the one we were in before the pandemic started.
Download our April Hotel Market Snapshot for more detail on how the hotel market is performing.