Motels have fared worst in the latest accommodation figures, which show a sharp drop in guest nights for June compared with the same month last year.
Statistics New Zealand says guest nights in motels dropped 14% in June 2008 compared to the same month last year, while guest nights for all types of accommodation fell 5%.
Many motel operators say they are only just scraping through the downturn and know of others who have had to leave the industry altogether.
The Motel Association acknowledges the latest figures but says many motels are bucking the trend and performing well.
And over the year ending June 2008, Statistics New Zealand says there was an overall increase of 2% in total guest nights.