March 2025 Quarterly Results

Source: Marketview. Not for Reproduction.

Out-of-towners flocked to country superstar Luke Combs and the Auckland debut of the SailGP one weekend in January. Valentine’s Day 2025 saw lovers boost overall spend compared to the previous year, and international spend shot up compared to the previous quarter.

We welcomed our first-ever Ethiopian restaurant into the city centre, and were pleased with the announcement that the St James's Theatre restoration is full steam ahead.

Let’s take a closer look at our March 2025 quarterly results. 

Sail GP and Luke Combs: two major events over the weekend of 17 – 19 January delivered big results

Sources: Spend: Marketview, Foot Traffic: HOTC Pedestrian Counts. Not for Reproduction.

Between 17 – 19 January, there was Luke Combs’s run of concerts at Eden Park and SailGP on the Waitematā Harbour, leading to notable spend and foot traffic increases.

There was an influx of out-of-towners in the city centre, with +93% in domestic visitor spending compared to the previous weekend. They made the most of their weekend with spending on attractions +162%, and cafes and restaurants +110%.

With 45% of Luke Combs concert attendees coming from outside Auckland, hotel occupancy across the region peaked at 90% on Saturday, 18 January 2025. The two concerts generated $8.19 million in tourism spend, with each visitor spending $250 per night, described by Tātaki Auckland Unlimited as “higher than any other concert”. Sail GP was reported as generating $5 million of GDP: Sail GP is set to have made millions for Auckland city.

There was a definite buzz in the city centre compared to the previous week, with our visitors contributing to boosts in overall spend (+25%) and foot traffic (+18%). Cafes and Restaurants had the biggest increase in overall spend, +37% vs. the previous weekend.

Within the quarter, January was the only month where spend was on par with the same time the previous year. These results emphasised the positive impact major events have on the city centre. We were delighted by the announcement in March that The Ocean Race is returning to New Zealand in 2027. It’s expected to attract more than 2,500 international visitors, who are predicted to spend around $20 million in New Zealand.

Romance and Revenue: Valentine’s Day spending blossomed

Source: Marketview. Not for Reproduction.

Lovers opened their hearts and their wallets in the city centre, with overall spend +9% compared to Valentine’s Day 2024, and +35% compared to the previous week. Dining and dreamy dates over drinks were popular:

• Hospitality spending more than doubled (+56%) vs Valentine’s Day 2024, with the number of transactions +61%.

• Compared to the prior week, there was +41% in spend on Cafes and Restaurants, including +31% in transactions.

Local Lunar New Year celebrations luminated the city centre

February also saw the city centre ring in the Lunar New Year – and Year of the Snake – with a programme of events and activations across the city centre. It included our walking tours with Chow Luck Club. For the second year in a row, the series quickly sold out.  From a decadent seafood degustation to a delightful prosperity salad toss, hand-pulled noodles to sweet and sour pork, it was an amazing way to experience some of our Korean, Vietnamese, and Chinese restaurants.

Participants loved tasting their way around eight of the city centre’s eateries:

“It reminds me of how rich the city is, with all its restaurants and bars and just little hole in the wall places you would not normally think of going that are just some of the best places you could eat….so yeah, I think there’s still heaps more for me to explore personally."

It offered a great opportunity for participating businesses too:

“By being involved in this tour, we can showcase who we are and what we are selling to people…and they can experience something [sic] than what they are used to…it works both ways.” 

Take a look at what businesses and participants had to say about the experience:

International spend took flight during the March 2025 quarter

Source: Marketview. Not for Reproduction.

Tātaki’s latest data shows that, for the year to February 2025, overall international arrivals in the Auckland region increased by +5.2% on the previous year. This included a jump in Australian arrivals: +9.8% and US arrivals: +1.4%.  

This positively impacted city centre spending during the March quarter. International cardholders accounted for 31% of overall spend, (up from 24% in the prior quarter), compared to 7% at our competitors.

International spend was $107.3 million, up +15% from the December 2024 quarter.  Cafes and restaurants were still the top choice for spending, making up 31% of the total.

Source: Marketview. Not for Reproduction.

Overall spend 

Source: Marketview. Not for Reproduction.

Our results for the March quarter show that the economic landscape in the city centre remains challenging, mirroring national trends. 

Source: Marketview. Not for Reproduction.

Overall spend here was -12%, with the number of transactions -6% and the value of transactions -6% vs. the December 2024 quarter. For our competitors, overall spend was -20%, the number of transactions -15% and the value of transactions -6% during the same period.

Results for the last 12 months show people have been spending less across the board, compared to the prior year. Overall spend in the city centre was -9%, the number of transactions -3% and the value of transactions -7%. For our competitors, overall spend was -5%, the number of transactions -2% and the value of transactions -3%.

Overall foot traffic

Source: HOTC Pedestrian Counts. Not for Reproduction.

On average, our pedestrian counters show approximately 1 million people come into the city centre every week. In the March quarter, foot traffic was -4% compared to the previous quarter – a drop of around 4300 people each day. Year-on-year, foot traffic in the city centre was -10%.

Source: HOTC Pedestrian Counts. Not for Reproduction.

Transformation an opportunity for businesses

Both the City Rail Link (CRL) and New Zealand International Convention Centre (NZICC) are expected to open in 2026.

Our Chief Executive, Viv Beck, emphasised in her New Zealand Herald op-ed the importance of leveraging the CRL opening and evolving the city centre to attract more people.

The CRL is expected to accommodate up to 24,000 passengers per hour per direction, with Te Waihorotiu – in the heart of Auckland’s city centre –tipped to become the busiest train station in the country. To date, there has been $6 billion in private investment in the area.

The heritage Strand Arcade on Queen Street has been undergoing a rejuvenation, having recently welcomed several new businesses. Among them are Slow Koi, a coffee shop with a difference, and Addis Ethiopian Café and Restaurant, the city centre’s first ever Ethiopian restaurant.  

Addis owner Getaw Cherinet told us that the completion of the CRL is one of the reasons he decided to open on Elliott Street:

“[It’s] one of the streets people are going to pass by, so it’s going to be a really great place to run the business,” he said.

For Getaw, opening in the city centre is a great way to share his culture, food and customs with a wide range of people. “It’s where you meet tourists, visitors and residents” he told us – and he’s already got plenty of repeat customers.

“Even if they didn’t directly come for the Ethiopian dish, they popped in, they loved the taste, and they keep coming back,” said Getaw – we love to hear it.

“When the [City Rail Link] is open… Elliott Street is one of the streets people are going to pass by, so it’s going to be a really great place to run the business.”

The opening of the NZICC is forecast to increase both tourism revenue and stronger global business connections. As of March, nine major events with a total of 15,500 attendees had been confirmed.

This will help support our accommodation sector, which recently welcomed the fully opened Hotel Indigo.

General Manager Matt Simister said the site was originally developed because:  “the owners loved the location backing onto St Patrick's Square, along with being able to retain the historic facade. The development of Albert Street and the revitalisation of midtown Auckland also appealed.” 

Matt highlighted “the proximity and ease of access for the many commercial and residential tenants in the midtown area” as one of the enjoyable reasons for having the Hotel Indigo in the city centre.

“We've created a beautiful, inviting space as an amenity for the community to come in and enjoy, and it is being extremely well received since opening at the start of April,” he told us.

Looking ahead: A major hotel acquisition, an icon is being restored and a big birthday
 

A big tick of international confidence in the city centre was given with the news that Singapore Exchange-listed Hotel Properties plans to purchase the InterContinental Auckland Hotel from Precinct Properties. The deal, brokered by JLL highlights the strong international interest here.

As long-standing supporters of the restoration of the St James Theatre, we were pleased with the news that the project is full steam ahead, with Auckland Council reconfirming its funding contribution in February.

Viv spoke in Stuff: 

“The St James has been sorely missed since it closed its doors all those years ago. We want a flourishing city centre that is rich in culture and entertainment for all Aucklanders to enjoy. The area surrounding the St James also holds some of the biggest opportunities for renewal. The St James will play a crucial role in both.” 

In March, the Britomart Precinct – and its unique mixture of heritage and urban offerings – turned 20 years old. Happy Birthday to the Britomart Group.