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Regions with strong international tourist appeal and food-producing industries should fare best in 2023 as the economy slows, says the bank.
But the bank warns a new Covid wave, the cost of living crisis, and China uncertainty could drag growth.
“Now that our borders are open, tourists are flocking in, regardless of the state of the global economy,” says the bank.
Which regions will benefit most from the increase in tourist spending?
The Chinese are yet to return but arrivals from other countries are on the move.
Economic confidence in the Otago region jumped 10 points over the December quarter, according to the latest Westpac McDermott Miller Regional Economic Confidence report.
Tourism-dependent Otago has suffered from Auckland’s lockdown.
Tourism and hospitality dependent regions reported falling confidence in the latest Westpac McDermott Miller Consumer Confidence Survey.
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