Fewer guests choose to stay in Bay

Hawke's Bay accommodation providers suffered a drop in business for July compared with July 2010, as did the whole industry.

Guest nights in Hawke's Bay fell 5.9 per cent and for the whole of New Zealand they fell 6.7 per cent, Statistics New Zealand accommodation survey figures show.

"Domestic guest nights were down significantly, with international guest nights also down," Statistics New Zealand industry and labour statistics manager Blair Cardno said.

"These decreases were across all accommodation types and most regions in the country."

The national trend for guest nights has declined since December 2009. The trend for domestic guest nights is relatively flat in 2012, while international guest nights appear to be rising since a low point in March.

Wairoa accommodation providers had a particularly poor July, with the lowest number of guest nights recorded since 2000.

Wairoa's Vista Motor Lodge and Restaurant operator Peter Nash, who is also vice-president of the Motel Association of New Zealand, said his business had done well but July could be "a month of extremes".

"I think it is wrong to look at one month in isolation. If you look at the figures over several months it usually averages out."

But there was pain in the industry. He said he had returned from a national conference where "there were some very sad stories".

In Wairoa there were prospects for increased trade leading into summer as work has begun on a $5 million family health unit.

"Hopefully we'll pick up some business from that."