Hotel profits risk lagging behind inflation as tourism rebounds

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Visitors are slowly filling up the country's tourism centres for the busy season, but profitability across the hotel sector is a mixed bag.

Hotel data for New Zealand says revenue per available room for hotels country-wide is up 14 percent on last November, and has just inched above 2019 levels.

However only hotels in Christchurch, Taupō, Hawke's Bay and the Nelson/Marlborough regions are keeping up with inflation.

Statistics New Zealand says international arrivals are rising, but are still down 15 percent on pre-Covid levels (2019).

And according to the Department of Conservation, about 100 tourist sites are closed this summer due to damage caused by Cyclone Gabrielle.

So what sort of summer season is the tourism sector expecting? Tourism Industry Aotearoa CEO Rebecca Ingram speaks with Kathryn Ryan.