The tourism industry is among the most significant sectors of the South Pacific. The tourism industry here in New Zealand includes both worldwide tourism and domestic tourism. It is also a very important sector for the country's recovery and growth from the global downturn of recent years.This research aims to study the effect of hotel development on the New Zealand market (using the factors of favorable external social and economic consequences, negative external impacts, social impacts and negative external social influences ). These are then compared with the present trends and foreseen situations to establish the effect of future increases in the hotel industry. After this, a description of the main factors that have affected the business is given.A description of the primary factors that have affected the industry is given in the context of past and future trends. check here In the past, increasing levels of tourism were closely linked to increases in property values, as well as increased tax revenues from guests. Future projections suggest that future hotel development will have little effect on the above-mentioned economic impacts. However, some of the changes we have already observed may be dampening the consequences of future increases in property value and taxes.The main factors of recent interest which have had the greatest impact on the sector include increases in the number of hotel rooms, declines in the amount of rooms in a building and increases in the cost of ownership of these properties. Both these factors have had a significant effect on the overall profitability of the business. The net effect of the two united has been a lower profit margin over the last twelve months compared to the same period in the previous year, even though the six-month figures remain strong.The reduction in the amount of hotel rooms around the market has had a significantly negative effect on the supply side of the business. On the other hand, more units aren't being sold, which could affect the profitability of each individual property. The reduction in the supply of hotel rooms also means that a greater number of prospective investors are able to purchase a share of these properties, which could reduce the profitability of the whole portfolio.The decline in the amount of rooms on the marketplace has created a reduced number of billeted bedrooms, which have significant social impacts. As a consequence of a diminished billeted capacity, the average daily rate per room has risen by around seven percent in Boston. This increase in demand has led to the creation of more units which are either fully or partially occupied. The effect on revenue and occupancy is important, with the majority of these newly occupied units expected to be occupied on an annual basis. Besides impacting revenue and the bottom line, the relatively large rate of occupancy combined with reduced prices for new units has made a range of secondary effects, including lower property maintenance expenses, an increase in the supply of short term bookings for new rooms, and a reduction in the volume of sales. The negative effect on the supply of billeted bedrooms will merely lower the amount of active units on the market.The gain in the number of vacant units on the market has had a corresponding negative effect on the level of stock on hand. This is particularly relevant for Boston hotels, as the largest increases in stock have happened in recent years as the active source of units decreased. As the active supply of units increases, there is an increased probability of vacancies, a drop in quality of inventory, and an increase in prices for unused inventory. In summary, a small increase in the supply of beds can cause larger increases in the purchase price of fresh inventory and lower profits due to higher levels of vacancy and slower investment returns.Beyond the direct effect on billeted bedrooms and the balance of active and vacant units on the property, the changes in the level of service among Boston hotels has created a ripple effect on the degree of quality of service expected from guests. Many hotels have found that after years of great success, guests have stopped patronizing their establishments and rather choose other local competitors. If this trend continues, it could have a very detrimental effect on the profitability of any hospitality operation. The solution? Creating a culture of hospitality that clearly communicates to clients they're welcome, appreciated, and the anticipation of exceptional service. The solution to enhancing customer experiences is a multi-pronged approach that includes both general improvements to guest interaction and specific actions that target the root causes of why guests are not returning.