Successful visitor market transition for the hospitality industry. A case study of Christchurch, New Zealand

Abstract

<p>Knowledge of, and experience in the market are key determinants in decision-making for any business. However, when a disruption occurs, similar to COVID-19, businesses need to rapidly respond to the situation to survive. This paper considers how hospitality businesses within the Christchurch, New Zealand, economy supported heavily by international visitors, were able to pivot from a substantial international market injection to a predominantly local market, and succeeded. The local industry experienced several disasters recently, which likely prepared the industry for a successful transition. Their success in transitioning the focus from a largely international target market to a domestic market is measured over time through point-of-sale card spending data and supported by a survey that captured initial concerns and the perceived impact that closed borders would have on their ability to operate during 2020 and beyond. The hospitality industry's ability to transition from a denpendency on significant international visitor spending injection to a predominantly domestic market exceeded their own expectations, suggesting that factors outside the business experience played a role in their success.</p>