Overseas investors are being encouraged to invest in luxury hotels in New Zealand as the total visitors arriving in the country continues to rise. The demand for four and five-star hotels has begun to outweigh the growth of New Zealand’s luxury offerings.
In Auckland alone, 4000 beds are said to be needed by 2025 even though around 72 percent of planned hotel construction is yet to begin. Dylan Lawrence, from New Zealand Trade and Enterprise, said, “It’s about partnering with New Zealand to create an outcome that is mutually beneficial.” He went on to note that it is essential for both parties that the hotels be planned, built and run by New Zealanders, as well.
Although there has been interest in New Zealand's luxury hotels in the past, there are concerns for someone looking to invest.
“People have to get their heads around getting overseas investment consent if they need it; and then, how do they deal with the local regulatory environment? The easier we can make it for people to invest in this stuff the better. Recognising that, we need rules to safeguard, and make sure we’ve got the right investors coming into this country,” said Andrew Petersen, commercial real estate expert, Bell Gully.
With an expected four million tourists to be visiting the country per year by 2025, a lot of beds will be required to maximise the guest experience in New Zealand.