Revenue from holiday home rentals has surged to record breaking heights following a strong summer period.
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Rental returns for property owners are up by nearly 40 percent on pre-pandemic figures and 14 percent on the previous year.
Latest figures from Tourism Industry Aotearoa show domestic tourism expenditure increased by 2.6 percent ($622 million) to $24.6 billion over the past year.
The summer season resulted in the biggest number of accommodation bookings, a four percent increase on the previous year.
Bachcare spokesperson Zaina Razzaq said the holiday home rental industry contributes hundreds of millions of dollars to regional economies around the country each year.
"For residential property owners, particularly those in coastal regions that are within driving distance of large urban centres, this has provided a growing opportunity to supplement their income," she said.
"We know that 90 percent of domestic leisure travel in New Zealand is by car and holiday home rentals appeal to a segment of the local market focused on lifestyle, primarily water-based activities."
A Mount Maunganui rental set a new record for the highest annual revenue for a single property, earning $81,000 last year.
This was the equivalent of more than $1500 per week, about three times higher than the average tenanted Bay of Plenty rental property.
"If we look at the top earning property as an example of what appeals to domestic travellers, the primary drivers behind its high rental returns are its location, capacity and quality," Razzaq said.
The highest incomes per booking figures were found at properties in Hahei, Mount Maunganui, Whitianga, Waihi Beach, Pauanui, Matarangi and Mangawhai Heads.
Holiday home rental revenue was up by 23 percent over the past 12 months.
Bachcare said it was predicting further growth of the domestic market, despite the borders reopening and international travel resuming for the year.
"We know there will be a segment of the market looking to travel overseas but early indications from forward bookings are that this will be another bumper year for holiday homeowners and regional tourism," Rassaq said.
"With many Kiwis choosing to holiday locally and an expected influx of international tourists later in the year we are expecting higher demand than ever for holiday home rentals."
She said the firm was actively looking to expand the number of properties it managed.
"At peak times like this, there is a shortage of supply."
