High Kiwi dollar encourages more travel
A report in The Southland Times sasy that a soaring Kiwi dollar may have left southern exporters smarting but those who export people are experiencing a boom as more people head offshore.
However, travel agents in the south said the high dollar was only one of several factors influencing a buoyant travel market that has seen more people book overseas holidays this year than any other.
Tony Laker, of Laker House of Travel, which has branches in Invercargill and Gore, said it was a record year for bookings and the business had increased its staffing numbers to meet demand.
“Southlanders are travelling more than they ever have before.”
While Southlanders were “good travellers” anyway, favourable exchange rates were working in their favour.
Jacques and Topping United Travel director Diane Jacques said while many holiday bookings had been made up to six months ago she expected the number of people looking to head offshore to increase in-line with the strength of the dollar.
“With the value of the dollar, especially against the United States and Australia we’ll definitely see a flow-on effect from that.”
Ray Muir, of Ray Muir House of Travel, said exchange rates probably influenced last-minute bookings but most holidays were booked in advance meaning the the state of the dollar at the time of travel was unpredictable.
“Just because the exchange rate’s so strong doesn’t mean everyone is packing their bags.”
Mr Muir said it had been a busy year for the travel industry across the board but he suspected cheaper and more competitive airfares than ever before and a desire to escape a cold winter were driving demand.
Queenstown travel agent Alan Ward, of Travel Smart, said while the value of the Kiwi dollar was a factor in encouraging people to travel, people tended to make the decision to book holidays regardless of exchange rates.
Mr Ward said the flip-side of the high dollar could see a decrease in the number of visitors coming into New Zealand and could hit a tourism hotspot like Queenstown hard.
“New Zealand has become an expensive destination.”
The high dollar had also increased the number of people sending money overseas and buying foreign currency.
ASB Invercargill branch manger Wayne Ellis said he had certainly noticed the increase in activity.
“The US dollar has been very a popular currency,” he said.
‘A record number of New Zealanders have packed their bags for overseas holidays so far this winter, according to the Travel Agents Association of New Zealand.
Figures released by Statistics New Zealand showed New Zealand residents left on 208,300 short-term overseas trips last month.
This was up 20,500 or 11 percent on the 187,800 departures in June 2006.
Report by The Mole
John Alwyn-Jones
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