Location selection decision making in the New Zealand motel sector - a preliminary framework

Abstract

Selection of location of a business is a crucial decision-making element in the motel sector as a flawed decision can be very difficult or even impossible to rectify. There is a notable gap in the literature on location selection for the tourism accommodation sector with almost all work focusing on hotel locations. While work within New Zealand is in itself particularly rare research on factors influencing motel location is virtually non-existent. This paper aims to review past literature on tourist accommodation location models and adjust it for New Zealand to develop a location selection model. This paper investigates the importance of a range of financial, non-cash benefit, agglomeration, connectivity, location and visibility, business environment and government policy factors influencing motel location selection decision. This working paper reports the findings of the review of the literature, in-depth interviews of sector experts, to propose a hierarchy for motel investment decision making. The findings demonstrate significant discrepancies between the theory and practice of the investment decision making for the New Zealand motel sector. Although only sparse research is available concerning motel location selection, this paper rigorously assesses the location selection process and assist stakeholders in understanding the location selection process. The resultant framework developed from the international literature and via a matrix of sector experts provides an initial framing of investment decision making in the New Zealand motel sector will be subsequently examined through the application of an Analytical Hierarchy Process (AHP) method of Multi-criteria Decision Making (MCDM). The overall goal is to explore the nexus between theory and practice and develop a model for motel location selection that may have relevance elsewhere in the global tourism sector.