Last week, Te Pae in Christchurch hosted the annual Australasian Hotel Industry Conference and Exhibition (AHICE), drawing a vibrant crowd eager to engage with the latest developments in the accommodation sector across New Zealand and Australia. The enthusiasm at the event underscored a collective commitment to learning, sharing best practices, and addressing both the challenges and opportunities facing the hotel industry. Below are some key observations from the conference.
The mood was cautiously optimistic, especially when looking beyond the immediate future. While the next 12 to 18 months will likely mirror trends seen across many industries—an expected boost over the summer followed by a tough winter in 2025—the longer-term outlook seemed brighter.
One theme that resonated throughout the event was resilience. This term, often overused, was genuinely applicable to the hotel industry, which has weathered numerous storms over the past five years. But the more exciting conversations were focused on the future. Many of the seasoned leaders, who have guided the sector through challenging times, are now stepping back. However, they are not disappearing altogether. Instead, these industry veterans are taking on mentoring roles, ensuring the next generation is well-equipped to face the coming changes.
A significant discussion centered around whether conversions or new builds are the way forward. With development costs soaring, the industry is rethinking what sustainability really means, and how these decisions will shape the sector in the years to come.
Renovations, rebranding, and strategic repositioning were other hot topics. Many properties have undergone significant transformations, not only in terms of physical upgrades but also in rethinking who their target markets are. In a competitive environment, adapting to market shifts has become essential for survival and success.
Throughout economic cycles, there are always opportunities to grow—whether it's expanding product offerings, investing in talent, or enhancing profitability. Many hotel operators are positioning themselves to be ready for the anticipated tourism rebound, looking to maximize profits when visitor numbers inevitably rise again.
As always, technology was a major focus at AHICE. The conversation this year felt more urgent, with the consensus being that tech is evolving faster than ever. The key question isn’t whether to adopt new technologies, but rather when and how far to go. While embracing innovation is essential for staying competitive, there was some concern that in the rush to meet the needs of future guests, hoteliers may overlook the current guest experience and their ability to adapt to new systems. At what point does technology stop being a competitive edge and become a basic necessity?
On the second day, Minister Doocey delivered an insightful presentation on the role of tourism and hospitality in New Zealand’s economic future. The government’s focus is clear: tourism, the country’s second-largest GDP earner, is expected to drive significant growth. The ambitious goal is to double New Zealand’s export growth in the next decade, with a $5 billion increase in tourism revenue targeted within four years. Tourism New Zealand is shifting its focus to off-peak seasons, aiming to generate 70% of this growth during those periods. This pivot offers new opportunities for the hotel industry, especially in areas like events, conferences, and targeted seasonal campaigns.
Another point of focus at AHICE was the luxury travel market. Historically resilient in the face of global recessions, this sector represents a lucrative opportunity for New Zealand. The country already offers world-class luxury experiences, but the challenge lies in attracting further investment and, crucially, developing the talent required to operate these high-end businesses.
The energy at AHICE this year was palpable. The attendees were optimistic, eager to drive the sector forward. With 93% of New Zealanders recognizing the value of tourism, the only lingering question from most in attendance was whether the government truly appreciates the industry's contributions. Greater investment in skills, resources, and infrastructure will be critical to unlocking the full potential of tourism and getting the journey underway sooner rather than later.
In short, the AHICE conference left us with one clear message: the future of the hotel industry is bright, but there is work to be done to ensure we are ready to seize the opportunities that lie ahead.