Convention centres to become the golden egg for hotel industry

Thursday, 5 July 2018

Hotels could use new technologies such as Alexa for as in-house concierge, as the hotels looks to fight tech disruption.

Convention centres are where the big bucks are, tourism experts say, as the sector looks to sink its teeth into the business that corporate events can bring.

Ministry of Business, Innovation and Employment figures show the number of delegates attending meetings and seminars increased 7 per cent to 1.6 million in the year ended December 2017 from the previous year.

At a hotel industry conference on Thursday, chief executive of Conventions and Incentives Sue Sullivan said Queenstown could be the next city to have a convention centre.

'There are some challenges with managing growth for the region, like any other place. But build and they'll come,' Sullivan said.

Former Ateed chief executive Brett O'Riley says business events at convention centres boost hotels and food and beverage sectors.

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An artist's impression of a 300-room, five-star hotel at the International Convention Centre in Auckland.

Queenstown saw growth of nearly 20 per cent in its revenue per hotel room, a recent Colliers report shows.

The two big convention centre projects in the pipeline are the $475 million convention centre in Christchurch and the Sky City convention centre in Auckland.

Former chief executive of Ateed Brett O'Riley said business events also boosted other sectors within the tourism industry including hotels and the food and beverage sector.

'We're beginning to see the industry recognise that business events yield higher returns for the tourism industry so it's likely we'll see more investment in convention centres,' O'Riley said.

'As an industry we could look to countries like Singapore when they host an event. Everyone collaborates, from zoos, to hotels and local businesses.'

Hoteliers also discussed the future of the industry and attracting more local customers.

Site Hospitality managing director Dave Galvin said hotels had to become hyper-local and focus on their restaurants independently of the main business.

'Spatial planning is important. You can't have bars and restaurants tucked away at the back if you want people to come to you. You're competing with all the other entertainment people can choose from, you have to be visible. People are eating with their eyes, their phones today,' Galvin said.

'You may have to dump your brand standards to grow your food and beverage arm. Fine dining is dying a slow death.'

Lifestyle hotel management company vice president Todd Wynne-Parry said international hotel design trends New Zealand could emulate included rethinking the check-in experience and in-room concierge with artificial intelligence and new technologies, like Amazon's Alexa.

Wynne-Parry said hotel developers had also started finding ways to connect rooms to restaurants in a bid to encourage in-house restaurant eating.

Hotels could also become add-ons and subscription-based, like country clubs, he said.