How is NZ tourism affecting short term property rentals?
Tourism is New Zealand’s largest export industry in terms of foreign exchange earnings, raking in $39 billion during the year to March 2018. That’s an increase of $2.8 billion or 7.7 per cent on the prior year.
All this growth has caused a Airbnb properties in Christchurch and Auckland to multiply, with hundreds of guests staying in short term rentals throughout the cities every night.
Tourism’s growth causes Airbnb boom
Airbnb provides a lower cost alternative to hotels and a more local experience for tourists, filling a huge gap in the market – especially when their are events in the city and hotels don’t have the necessary capacity.
As a result the platform had its busiest year yet in NZ, boasting 578,000 stays over 1.5 million nights and contributing $660 million to the New Zealand economy, according to a Deloitte report. This created over 6,000 jobs, as well as boosting our short term accommodation room supply and enhancing visitor experiences.
This growth looks set to continue with international tourism revenue forecasted to increase by 4.9 per cent per year until 2049.
Taking advantage of the Airbnb opportunity
What’s great about Airbnb is that it allows every day Kiwis to get involved in the country’s booming tourism industry, earning extra cash from their property.
That explains why there are well over 2,000 Airbnb properties in the city, with the average host earning $11,071 per year, AirDNA figures show.
Most of the team at Williams Corp are all involved in Airbnb and personal experience has shown us that the right property in the right place can return north of 10 per cent gross per year. That’s considerably better than your average long term rental.
If you’re interested in getting involved in the booming short term accommodation industry in Christchurch or Auckland, get in touch with the team at Williams Corporation. We’ve got plenty brand new homes for sale that are perfectly suited to Airbnb and we’re happy to help you come up with your own strategy to get those visitors through your door.
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