According to Queenstown Lakes District Council, hotels in Wakatipu, situated in the South Island of New Zealand, are cutting room rates to ‘ludicrous' levels to capture guests.

It was noted that group bookings from European markets have declined but the number of casual fully independent travellers (FIT) has increased.

In addition, campervan holidays had become increasingly popular as the number of motorhome companies rose and rental rates have fallen, posing increasing competition for the hotel market.

In March 2009, Hotels.com showed that the price of hotel rooms in Queenstown had dropped by 35% and the average price for a night's accommodation in Queenstown had fallen from approximately US$154 to around US$98. 

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