New Zealand reported stable demand in accommodation sector in August with total guest nights in short-term commercial accommodation stood at 2 million, the same level as in the corresponding period last year.

However, guest nights declined in North Island and rose in the South as reported by Statistics New Zealand on Monday.

International visitors contributed 0.8 million guest nights while domestic customers numbered at 1.3 million during the reporting period. North Island reported 3 per cent decline in guest nights terminating the rising trend since November 2008. South Island, on the other hand, reported 6 per cent and 3 per cent rise in international and national guest nights.

Statistics New Zealand maintained that seven out of total 12 regions surveyed reported an increase in guest nights. International guest nights witnessed largest surge in Otago while Christchurch performed well in case of domestic guest nights.

Overall guest nights in the regions such as Auckland and Bay of Plenty significantly decreased. The country reported 1 per cent decline in international visitors in August 2009 against corresponding period last year.