NZ Tourism hit by $500m slump in domestic travel spend
NZPA and the NZ HERALD report that spending by domestic travellers in NZ fell by $507 million or 6.4 per cent to $7.39 billion in the year to June 2008, new research from the Ministry of Tourism shows.
“Weaker economic conditions and high fuel costs during the period are being reflected in a reduction in demand for travel, including domestic travel,” ministry research manager Bruce Bassett said today.
The number of overnight trips fell by 5.5 per cent from the previous year to 14.4 million trips, while the number of day trips dropped 15.5 per cent to 25.9 million.
If the price of fuel stayed down in coming months, Bassett expected to see an increase in domestic activity, particularly in the number of day trips.
Despite the decline, the overall level of activity remained high with 40.2m day and overnight trips made in the last year by New Zealanders, Bassett said.
Today’s’ research comes the same week that Statistics NZ unveiled a big drop in the number of international visitors last month.
It said tourist numbers fell 6.6 per cent, or 11,100 people, in September compared with the same month last year – the equivalent of 25 jumbo jets full of passengers.
The year to September 2008 was also down, although the drop was less than 1 per cent.
The biggest loss came from China. Visitors from there dropped by a third, falling by 2700 to 5497 in September.
China is New Zealand’s fourth-largest market and Tourism New Zealand has been actively targeting it with a $7 million campaign. Australian visitor numbers were down 3 per cent.
The only market to see an increase was Canada, where numbers have risen from a low base on the back of Air New Zealand’s new direct service launched this year.
Tourism New Zealand chief executive George Hickton blamed increasing economic uncertainty for the drop and predicted even tougher times for the year ahead.
“It is clear New Zealand tourism is facing difficult times as a result of the financial crisis and that things will be even more challenging in 2009.”
International tourists spent $8.8 billion in New Zealand in the year to March 2007, putting tourism at 18.3 per cent of total New Zealand exports.
Tourism generated a direct contribution to gross domestic product of $7.9 billion, or 5.1 per cent.
A Report by The Mole
John Alwyn-Jones
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