SILVER LINING FOR HOLIDAY RENTALS
Uncertainty has been the dominant theme of the year for most people and most businesses. That’s because the Covid-19 pandemic has cut a swathe through the economy, leaving many struggling. But, right from the start of New Zealand’s lockdown, it was clear that certain sectors would bear the brunt of the crisis.
One of those sectors, as is widely known, is the tourism sector. Before Covid it was worth $40.9 billion to the economy. With the borders closed to international tourists, that turnover has taken a hit. Domestic tourism, though, is booming. New Zealanders have heeded the call to get out and see their country.
According to Tourism New Zealand, domestic visitation in the July school holiday period grew across all regions – by, in some cases, between 20-50% compared to the previous year. Going forward, they say their scenario modelling shows domestic tourists may spend up to 18% more over January than the year before.
But tourism industry leaders have also warned that the absence of international tourists has left a gap that Kiwi travellers may struggle to fill. So what does this state of affairs mean for the short-term rental market? And what does it mean for investors who use their properties
