By Maia Hart, Local Democracy Reporter
An illustration of the Sudima Hotel in Kaikōura, set to open on 17 October. Photo: Supplied / LDR
A new hotel in Kaikōura that has not even opened yet is already taking bookings from Marlborough, the region's tourism boss says.
It comes as Destination Marlborough general manager Jacqui Lloyd told Marlborough District Council Blenheim needed a hotel to remain competitive in the conference and business events market.
Her presentation prompted Wairau-Awatere ward councillor Gerald Hope to ask if conference conveners had provided any feedback on the availability of accommodation in Marlborough.
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Lloyd said they were working with the constraint of not having a large hotel.
"I think we've got a great corporate market that comes into Marlborough. One that often people don't realise for our accommodation sector.
"And so at the moment we work around the barrier of not having a large hotel that can take an entire conference group by splitting it out through the region."
She said there were "certainly" a number of motels that were walking distance to the main centre anyway.
"But for future if we wanted to keep working in the space we will need more accommodation going forward."
Destination Marlborough general manager Jacqui Lloyd said Marlborough is already losing business to a new hotel in Kaikōura that hasn't opened yet. Photo: BRYA INGRAM / STUFF
Despite this, of the 20 regional conference bids they wanted to do this year, they had put in for six and won four.
"That's in the last three months, so we're really thrilled with the interest," she said.
"Business events obviously have had a tough ride, but with changes to restrictions, and confidence coming back into the events industry, we feel that Marlborough's in a good position to get more business that way."
She said the immediate pressure was a number of small "bed and breakfast type" accommodation providers across the Marlborough region were no longer operating.
"Many of those have changed hands or owners, or moved back to family ownership. Partly because people have said actually I've had two years not having visitors, and I'd like to sell up now or turn it back to a home - so that's our immediate constraint at the moment, small operators like that.
"We have new infrastructure in neighbouring regions, in Kaikōura the Sudima Hotel is about to open and it is already taking business from Marlborough, as some of the coach touring moves down there rather than in our region, and that's the capacity constraint."
Lloyd was presenting Destination Marlborough's annual plan to a council planning and finance committee last week. She said Marlborough's tourism was not expected to hit pre-pandemic levels until at least 2024, maybe even 2025.
"I am hugely optimistic and will continue to be," she said.
"But we will have some challenges this year, we will have a slow return in recovery, we will see a slow return for visitation, and that of course affects our businesses.
The first cruise ship since the Covid-19 pandemic is expected back in Marlborough on 26 October. Photo: SUPPLIED: STUFF
"So there will be slow business recovery for the industry be it hospitality or tourism. Air capacity is constrained but it is returning.
"By November we should see some good returns out of the North American market, and then ... into UK, Europe and other markets. We're limited out of Asia at the moment."
She told councillors the region had seen good growth in domestic visitor spend over the last two years, and they hoped to increase that. They hoped international spend would also increase, but had not set a target for this yet.
"There is some nervousness for those travelling further afield of just wanting to make sure that New Zealand stays open, and they don't get stuck. That'll change.
"Everyone will be competing for the same people we are to come into our region, and that's also our locals.
"There will be so much advertising to get people to Fiji over winter when we want our locals to spend more money in our region."
Destination Marlborough annual plan figures showed visitor spend in the 2019-20 financial year was $411 million, but in 2021-22 this had dropped to $177m, given borders were closed and therefore all tourism was domestic.
It had set a 4 percent growth target for this domestic spend during the 2022-23 financial year.
Blenheim ward councillor David Croad questioned whether a 4 percent domestic growth target was "aspirational enough".
"It has been a really challenging environment, and I appreciate that ... you really should be pushing the boat out a little bit more," Croad said.
Lloyd said she would take that feedback back to the Destination Marlborough board.
Local Democracy Reporting is Public Interest Journalism funded through NZ On Air