Strong growth in the local accommodation sector is a result of more New Zealanders visiting the city.

The latest data shows an almost 18% increase in the number of domestic guest nights per month.

That's responsible for driving up total guest nights, despite a drop in the number of international visitors.

Dunedin's overall occupancy rate is about 70%.

Nationwide visitor numbers are being buoyed by growth in the China market.

The number of Chinese visitors in May was almost double that of the same month last year.