Tākina a year out: where are the people?

We built it. Looks like they will come. But questions are being raised about whether Wellington will have enough rooms for the hundreds of thousands of people expected to flock to the city’s new convention center.

A year after the opening of the Tākina Wellington Convention and Exhibition Centre, those behind the project are justifiably proud of achieving a quirk in Wellington: David Perks, WellingtonNZ Tākina’s general manager of commercial development, is confident that the project will be completed by the middle of next year. Will be delivered on time year and within budget of $179 million.

But if the center opened today, there probably wouldn’t be enough hotel rooms to accommodate everyone who comes, he said.

The new convention center is expected to host 400,000 people per year.

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Hospitality NZ figures show there are more than 4,200 hotel rooms in Wellington, and the number has remained stable compared to pre-pandemic. The WellingtonNZ agency worked with hotel operators and property owners to try and increase the number.

Problems with Wellington’s accommodation when major events come to the city are not new. When the Lions played in Wellington in 2017, around 400 fans had to fly in before the game and then leave due to a lack of accommodation in the capital† When rap star Eminem came to town in 2019, after other big events, pretty much every hotel, motel and Airbnb bed was full† And during the Rugby World Cup 2011, one hotel increase room rate from $220 for one night to $1000 due to demand†

Some conventioners will be based in Wellington, but many would come from out of town. 44 multi-day events had already been booked for the first year, each with 300 or more guests, and now the aim was to fill the gaps.

“Our goal is to get full every day,” Perks said.

Some new accommodation options have recently opened in Wellington, such as the 81 room Microtel on Vivian St later this month, the Ramada Suites in June 2021, and the restoration of the former Grand Mercure on the Terrace as the Mövenpick Hotel after being used as an MIQ facility.

But due to the pandemic, a number of central city accommodations – mostly at the lower end – have been converted to emergency shelters.

Hospitality NZ President Jeremy Smith, who is also director of the Trinity Group which runs hotels in Wellington, said the industry was “desperate” for the convention center to open as soon as possible as it ensures continued demand to rooms.

“I don’t think there are any major risks,” Smith said. “The sector can adapt. There is the possibility of converting office buildings into hotels in the short term.”

“Airbnbs will reopen when the demand is there.”

Simon Arcus, head of the Wellington Chamber of Commerce, said hotels in the capital struggled to fill rooms on weekends and the new convention center would help with that.

“Conferences taking place over the weekend will help fill the gap,” he said. “Anything to increase the occupancy rate is welcome.”

Mayor Andy Foster – who confirmed on Tuesday he was seeking a second term – said housing demand had increased over the past 30 years and the market had responded by building more. He expected the same thing to happen to Tākina, but wasn’t sure it would happen in time.

“What usually happens is people price accordingly — that’s not the ideal way,” he said.

Fellow candidate Tory Whanau said it was exciting that the center would bring people and vibrancy back to the city.

“I am also very curious about an increase in hotel accommodation in our city. A higher density in our city center would allow us to do that, which I will of course push when I become mayor. †

Another candidate, Paul Eagle, said the apparent lack of housing planning for the center’s opening was the epitome of the way the city was run.

“If we had a convention center, I would have thought we’d have the accommodation to handle it,” Eagle said.