Mixed report on holiday tourist business activity

January 8th, 2011
[by David Armstrong]

Motueka retailers and tourism-oriented businesses report mixed results so far this holiday period in the face of worries that the global recession could have serious impact on their livelihoods.

Asked if this year has been better, worse or much the same as last summer for a selection of businesses spoken to by Motueka Online, responses suggest that most firms which gain significant income from touring visitors are doing okay and should hang in there as the world adjusts to more careful times.

The best indicator of how we're doing with international visitors is found at i-SITE. Although not all tourists from overseas necessarily use i-SITE, a much larger proportion do than do Kiwi holiday makers. Eighty-eight percent of people using the tourist information hub were non-Kiwi last month.

i-SITE says overall visitor numbers for the Christmas/New Year week were down 5% from last year, but the revenue gained from them was up 21% - an outstanding result indicating that those visiting are either spending more on their holidays, choosing higher-value products, or being better served by staff who are up-selling more.

November was a better month than usual for i-SITE, and January is shaping up to being "solid" and "edging slightly ahead", says manager Lois Walker. But she did note an interesting fact - that the Decks Reserve carpark next door this year has had far fewer campervans and sleepervans parked up. Interpret that observation as you will.

Other businesses spoken to reported a mix of experiences on both sides of the ledger. Here are some. (Cautionary note: it is understandable that some businesses may prefer to give an optimistic response for fear that saying things are not going well may give an overly negative impression.)

Equestrian Motel: Bookings are as good or slightly better this year than last. Since Boxing Day the units have been pretty well full, and January is filling up. Of interest is that this year about 30% of bookings were made online via the motel's updated website, much higher than in the past.

Bay Pharmacy: They're doing okay though patchy, with turnover similar or slightly better than last year.

Top 10 Holiday Park: Last summer they were full throughout the Christmas and New Year holiday period and this year has been much the same, with the grounds full every night and staff running flat out. However, November and before was down on the previous year and it is expected to be "soft" once the main holiday weeks are past.

Take Note: Pre-Christmas was quiet, but since then trade has been brisk, similar to last year. People visiting seem happy to go on buying what they need while holidaying.

Sprig & Fern: Being new, there is no comparison with last year, but the owners are happy with trade so far. However they've heard through general conversations around High Street that some retailers are down in business a bit.

Red Beret and Swinging Sultan: Both doing better business than last year, and in fact one of the best years since about 2002. It is thought that perhaps this is due to more Christchurch people visiting to escape the earthquakes.

Motown Pizzeria: Business had been very quiet up to Christmas, but they've had a "massive hit" since then. They expect this to settle down now, after the Kiwis return home, but to be steady as the overseas tourist numbers rise. Their discussions with other businesses suggests business has been quieter overall since last year.

Coast Roast: Also has experienced less business than last year. Town has plenty of people visiting, they said, but they're not spending as much.

Rolling Pin Bakery: They have been very happy with business since Boxing Day and have had a perfectly satisfactory year in business.

Patisserie Royale: Their business has had slightly better results this year, thanks largely to good crowds from Christchurch.

Wilsons Abel Tasman: Business has been down with fewer people around, and certainly not as good as last year.

Sportsworld: December has been down about 7-8% on the same month last year, and 2010 has been a hard year generally for Motueka retailers. There appear to have been fewer international visitors but about the same number of Kiwi visitors but they have been a bit more careful with their wallets, probably because of uncertainties around the Christchurch earthquakes. So far, however, January is tracking much the same as last year.

Celsius: This past year - and particularly the summer holidays - have been definitely better than the previous year, with sales and numbers up. They even had a good winter.

Whitwells Menswear: This summer so far has been "buoyant", with trade surprisingly going well and looking good for strong January figures. It's maybe even been better than each of the past two summers.

Comment by William Cleaver:
[Posted 8 January 2011]

Nice to see a good representation from the Motueka CBD. What about Riwaka, Kaiteriteri and Mapua? The feedback from the Grumpy Old Mans Club is that your bracketed remark about stretching actual facts couldn't more truthful.

Resurgence Coffee (a supplier to wholesale and retail) has had mixed trade. Retail at our own store is up, more likely due to more people knowing where we are and what we offer as we are only in our second summer. Also the Riwaka Fair this year was held in fine conditions. Wholesale is down at some cafes we supply but up in others. One due to the state highway closure because of rain is up 500%.

We believe that just figures is not a clear representation of how busy you are. More people spending less dollars or visa versa, the concern is did we make enough to keep the banker off your back over the coming winter.

Editor's response:

You're right, William, I should've included comment from outside Motueka CBD, but I had time only for a 90-minute walk around so that's all I managed. Thanks for your own observations. I invite any other businesses in our area to offer similar comments about their own experiences, and they will be added to the article.

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