Tourism sector outpaces hotel development
Taupō has close to 1 million visitor nights each year and is short on accommodation when big events are on. Photo / Dan Hutchinson
Taupō’s business agencies are targeting hotel developers in a bid to solve a shortage of quality accommodation.
By Dan Hutchinson
The district’s commercial (motel and hotel) tourism sector is expected to reach 1.1 million visitor nights by 2034, up from about 800,000 in 2023.
The Taupō District Council’s business development agency Amplify this week released its Hotel Investment Prospectus to highlight hotel demand in the region.
The plan is to attract hotel investment to create an extra 300 room in the next decade, in the 4.5 to 5-star category, where a shortage exists in the market.
Several consents have been issued in recent years for hotels in the Taupō CBD, that would equate to about 300 rooms, but development appears to have stalled.
Mayor David Trewavas says Taupō is a world-class tourism destination, and they want to ensure the accommodation sector meets the growing demand.
“This prospectus provides investors with the opportunity to consider our remarkable region for their next hotel development project.”
He says there are three developments that have been given resource consent in Taupō but none have yet been built.
That had a lot to do with economic conditions but with inflation levelling off and the cost of borrowing now lower, it was now all “green lights” as far as the commercial case for a new hotel in the town, David says.
“But it’s not me building it and people have to take a risk to build so we want to make sure the pathway is clear and tidy and quick for the.
“It is first up, best served and you will get the business.”
Amplify Taupō CEO Rick Keehan says the prospectus highlights the opportunities for new quality accommodation and they are ready to partner with investors “who share our vision for the region’s future”.
He says they have been engaging with all the current consent holders and “someone will pull the trigger at some stage”.
He says Taupō has one of the highest average room rates in the country for hotel accommodation
General manager of Destination Great Lake Taupō Patrick Dault says visitor demand in Taupō continues to grow, and high-quality hotel accommodation is key to unlocking the district’s potential.
“This prospectus is a call to investors who see the opportunity in being part of Taupō’s next chapter.”