Hotels winners as convention centres arrive
Convention centres are where the big bucks are, tourism experts say, as the sector looks to sink its teeth into the business that corporate events can bring.
Figures from the Ministry of Business, Innovation and Employment show 1.6 million delegates attended meetings and seminars increased 7 per cent to 1.6 million in the year ended December 2017, a 7 per cent increase on the previous year.
The chief executive of Conventions and Incentives, Sue Sullivan, told a hotel industry conference that Queenstown could be the next city to have a convention centre.
‘‘There are some challenges with managing growth for the region, like any other place. But build and they’ll come,’’ she said.
Queenstown saw growth of nearly 20 per cent in its revenue per hotel room, a recent Colliers International report shows.
The two big convention centre projects in the pipeline are the $475 million development in Christchurch and the SkyCity scheme in Auckland.
Brett O’Riley, a former chief executive of Auckland Tourism, Events & Economic Development (Ateed), said business events boosted other sectors including hotels and food and beverage.
‘‘We’re beginning to see the industry recognise that business events yield higher returns for the tourism industry, so it’s likely we’ll see more investment in convention centres,’’ he said.
‘‘As an industry we could look to countries like Singapore when they host an event. Everyone collaborates, from zoos, to hotels and local businesses.’’
Hoteliers also discussed the future of the industry and attracting more local customers.
Site Hospitality managing director Dave Galvin said hotels had to become hyper-local and focus on their restaurants independently of the main business.
‘‘Spatial planning is important. You can’t have bars and restaurants tucked away at the back if you want people to come to you. You’re competing with all the other entertainment people can choose from – you have to be visible,’’ Galvin said.
‘‘People are eating with their eyes, their phones, today.
‘‘You may have to dump your brand standards to grow your food and beverage arm. Fine dining is dying a slow death.’’
Lifestyle hotel management company vice-president Todd Wynne-Parry said international hotel design trends that New Zealand could emulate included rethinking the check-in experience and in-room concierge with artificial intelligence and new technologies, such as Amazon’s Alexa.
Wynne-Parry said hotel developers had also started finding ways to connect rooms to restaurants in a bid to encourage in-house restaurant eating.
Hotels could also become addons and subscription-based, like country clubs, he said.