Recovery

The return of international visitors is helping to improve New Zealand’s economy and shrink the current account deficit, according to Finance Minister Grant Robertson.

International tourism has continued its strong recovery from the pandemic with arrival numbers reaching 84% of pre-pandemic levels between January and July 2023.

Tough economic conditions are not deterring travel, but fewer in the UK and Germany are considering NZ.

Reducing the reliance on just one or two large markets is a priority for Mackenzie’s operators, according to an industry survey.

Overseas visitor numbers from the United States to New Zealand in July have outpaced even pre-Covid 2019, possibly due to the FIFA Women’s World Cup, according to Stats NZ.

The major ITO says a strong recovery allows investment to help meet changing customer preferences.

Low tourism numbers, expensive flights, rising interest rates and other costs are contributing to a sluggish tourism recovery, according to respondents in a survey by former Bank of New Zealand chief economist Tony Alexander.

Visitor spend in the West Coast’s Westland District increased by 96% over the year to the June 2023 quarter – the strongest growth of any region, according to Development West Coast.

The 7-day isolation requirement for positive cases will be scrapped overnight, ending the last area of Covid friction for tourism.

New Zealand tourism has had a roller coaster year since the borders re-opened a year ago, says Tourism Industry Aotearoa.

One year after New Zealand’s borders started opening, the country’s major source markets have seen substantial increases in arrivals and are closing in on pre-Covid levels.

Plans for domestic travel spending over the next three to six months remain weak with Kiwis pessimistic about the economy, according to Tony Alexander’s latest spending plans survey.

New Zealand’s trade deficit narrowed to $3.2bn dollars in the March 2023 quarter, compared with $3.9bn in the March 2022 quarter, according to data from Stats NZ.

Rotorua businesses are feeling more upbeat about the future of the city, according to the latest Business Pulse report by RotoruaNZ.

The International Air Transport Association has reported high levels of confidence among travellers for the peak northern hemisphere summer travel season.

However, the majority of UNWTO’s panel of experts agreed that international tourism would not make a full recovery to 2019 levels until at least 2024 or later.

The region’s tourism has bounced back from a difficult pandemic, buoyed by the return of foreign tourists.

The industry is expected to generate US$9.5tn in 2023 and surpass pre-Covid earnings next year.

Overseas visitor arrivals rose to 266,900 in February 2023, up 261,600 from the same month last year because of the border being closed then, according to Stats NZ’s latest travel figures.

But Angus & Associates says the industry must remain “very mindful of sharing tourism’s benefits and eliminating its burdens”.

Plans to spend more on domestic travel have turned positive for the first time since November 2022, according to Tony Alexander’s April spending plans survey.

Increasing visitor expenditure and longer stays also prompts the association to increase its spending guidance.

“The challenge we have at the moment is capacity meeting demand,” says Emirates’ regional manager in NZ, Chris Lethbridge.

Aging products, a lack of capital investment during the pandemic, and staff shortages will be key challenges for New Zealand’s tourism industry, says Jucy cofounder and LyLo managing director Tim Alpe.

The government is providing a further $25m in grants to help more businesses in cyclone-affected regions with the clean-up and to get them back up and running. 

The government is rolling out legislation to help regions around the country to recover from Cyclone Gabrielle as efficiently as possible.

Wairarapa is now eligible for the $25m government-allocated support package for businesses affected by Cyclone Gabrielle.

Just under $500,000 will be paid out to Hawke’s Bay communities, individuals, families, community organisations and marae affected by Cyclone Gabrielle.

Domestic travel spend sentiment has soured and the continuing mechanical issues plaguing Cook Strait ferries do not help, says former BNZ chief economist Tony Alexander.

Waikato businesses are now able to access the $1.42m cyclone and flood recovery support funding administered by Thames Coromandel District Council and allocated by the government.

Ruapehu District Council has committed $10,000 toward the Mayoral Relief Fund to aid Cyclone Gabrielle recovery efforts and also help local tourism.

Travel service exports are continuing on a strong growth trajectory due to a rise in international passenger numbers.

The return of Chinese tourists and students will give New Zealand’s economy a welcome boost this year as domestic demand wanes, says Westpac.

A stronger than expected recovery at Christchurch Airport helped drive net profit after tax to $16.1m for the six months to December 2022, up 39.1% on the same period a year earlier.

KPMG was engaged to scope interest in the youth and adventure-focused coach business.

Tourism spokesperson Todd McClay says the Nats will ease immigration rules and scrap median wage requirements to help operators.

Only international travel and grocery spend sentiment remain positive with domestic tourism expenditure plans still lagging, according to Tony Alexander’s latest spending survey.

The race is on to attract backpackers and boost occupancy from late summer through to autumn.

Emirates’ restart of its A380 service to Christchurch will add more than 3,400 seats every week to the trans-Tasman route.

International visitor numbers at Queenstown Airport in December tracked 10% above pre-Covid levels.

Business travel platform Serko has upgraded its revenue guidance for the year to March 2023, following a stronger than expected revenue performance across its major markets.

International tourism recovered 63% of pre-pandemic levels last year, with Europe and Middle East in the lead but Asia Pacific lagging.

South Island operators bask in the glow of good weather and a strong international rebound over the summer peak.

But some northern tourism businesses have seen good numbers despite the soggy start to 2023.

After nearly three years of discounting to attract the domestic market, many operators have raised their prices this summer to cope with increasing costs.

The return of international travel has given the economy an unexpected lift, surprising analysts with the strength of activity.

There has been a strong start to the summer tourist season but capacity constraints are dragging the industry, according to ANZ.

Accommodation in New Zealand’s New Year’s hotspots is close to full capacity, with demand for Bachcare holiday homes over the summer up by 66% compared to last summer.

The Tourism Export Council of New Zealand is more positive about the pace of New Zealand’s visitor recovery despite ongoing uncertainty around the return of the China market.

Global export revenues from tourism could reach US$1.3tr in 2022, although Asia Pacific’s recovery lags.