Tourist transactions up 8% in last quarter of 2006

NEWS RELEASE

Tourist transactions increased by eight percent in the last quarter of 2006

Auckland, 7 May 2007 – Approximately 3.8 million Visa card transactions were made in the last quarter of 2006 by tourists visiting New Zealand, representing an increase of eight percent compared with the same period a year earlier, according to data released by Visa International.

The biggest international spenders were cardholders from the United Kingdom, Australia, the United States, South Korea and Germany, collectively accounting for 73 percent of the total Visa spend by international cardholders according to Visa data.

“New Zealand’s tourism industry will take heart from our latest visitor spending data which demonstrates a healthy growth year on year by tourists to this country. It is also encouraging to see the level of spending by tourists has increased in the last quarter,” said Mr. Iain Jamieson Visa International’s Country Manager for New Zealand.

European cardholders were responsible for 42 percent of the total inbound spend with Asia Pacific cardholders coming in second at 36 percent the Visa data reveals. The total amount of tourist spend on Visa-branded cards for the quarter was NZ$674 million.

The most popular category for tourist spending was transport (22 percent of total Visa spend), followed by retail goods (18 percent), accommodation (11 percent), sports and leisure (nine percent) and restaurants and groceries (seven percent)1. The top retail merchants were clothing stores, flowers and gift stores and specialty retail merchants.

Overall tourists visiting New Zealand between October and December 2006 spent two percent more than they did in the same period a year ago.

The biggest incremental increases in spend occurred at travel-related services (increase of NZ$4.1 million), medical wholesalers and distributors (increase of NZ$3.3 million) and on sports and recreation (increase of NZ$2.3 million). Tourists’ spending at medical wholesalers and distributors grew 218 percent year-on-year, representing the highest level of growth among the major industries covered by the report for that period.

An area for the tourism industry to examine is the reduction in spend at attractions and exhibits (decrease of NZ$1.5 million) over the last year. The largest decrease in international Visa spend compared with a year earlier was recorded by non-catalog direct marketers (decrease of NZ$4 million) and catalog merchants (decrease of NZ$1.5 million).

Further facts are contained on the following page.

1 Excludes cash withdrawals

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Note: For the purpose of calculating average transaction sizes, only the top 30 largest spenders, which account for almost 100 percent of the total regional Visa spending by international cardholders in New Zealand, are used. All data is based on transactions processed through VisaNet, Visa’s global transaction processing network and includes both consumer and business transactions.

About Visa: Visa connects cardholders, merchants and financial institutions through the world's largest electronic payments network. Visa products allow buyers and sellers to conduct commerce with ease and confidence in both the physical and virtual worlds. Visa is committed to the sustained growth of electronic payment systems to support the needs of all stakeholders and to drive economic growth.

Visa products currently generate more than US$4 trillion in sales volume worldwide. Visa enjoys unsurpassed acceptance around the world. In addition, Visa/Plus is one of the world’s largest global ATM networks, offering cash access in local currency in over 170 countries. For more information, visit www.corporate.visa.com.

About Visa New Zealand: Visa is one of the leading payment brands in New Zealand with more than 1.8 million Visa-branded cards in the country and 100,000 acceptance locations. Visa’s card sales volume was NZ$16 billion for the year ended December 2006*. For more information, visit www.visa.co.nz

*As reported by member financial institutions and therefore may be subject to change

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FACT SHEET

Tourist Spending in New Zealand (October to December 2006)

* Tourists to New Zealand spent NZ$674 million (US$432 million) on their Visa cards during the fourth quarter of 2006.

* Between October and December 2006, the overseas visitors spent two percent more than they did in the same period a year ago in local currency terms.

* Cardholders from United Kingdom, Australia, the United States, South Korea and Germany were the biggest Visa spenders in New Zealand collectively accounting for 73 percent of total Visa spend by international cardholders.

* European Union cardholders made up 42 percent of the inbound spend, Asia Pacific cardholders – 36 percent, US cardholders – 16 percent, Canadians – three per cent and cardholders from Eastern Europe, Middle East and Africa – two percent.

* The most popular Visa spend categories were transport (22 percent of total Visa spend), retail goods (18 percent), accommodation (11 percent), sports and leisure (9 percent) and restaurants and groceries (seven percent)1. Among the broad spend categories the fastest growing was spending on healthcare which increased 22 percent year on year in local currency terms. Foreigners’ expenditure on education in New Zealand fell by 15 percent compared to a year earlier.

* Approximately 3.8 million Visa card transactions were made by overseas tourists in New Zealand, which is an increase of eight percent compared to the same period a year earlier. Most were made at retail and wholesale outlets (725,000), restaurants and food outlets (713,000) and transportation services (617,000).

* The top retail merchants were clothing stores (NZ$24.1 million or US$15.5 million), flowers and gift stores (NZ$24 million or US$15.4 million) and specialty retail merchants (NZ$9.9 million or US$6.4 million).

* Cardholders from the UK spent more than other nationalities in department stores, while Australians spent more in duty free and clothing shops. Americans spent much less in duty free as compared with arts and crafts stores.

* The biggest incremental increases in spend occurred at travel-related services (increase of NZ$4.1 million), medical wholesalers and distributors (increase of NZ$3.3 million) and on sports and recreation (an increase of NZ$2.3 million). Foreign spend at medical wholesalers and distributors grew 218 percent year on year, which is the highest among major industries covered by Visa.

* The largest decrease in international Visa spend compared to a year earlier was recorded by non-catalog direct marketers (decrease of NZ$4 million), attractions and exhibits (decrease of NZ$1.5 million) and catalog merchants (decrease of NZ$1.5 million). International spend at non-catalog direct marketers decreased by 52 percent which is the highest among major merchant categories covered by Visa.

* International cardholders withdrew cash amounts totaling NZ$147 million or US$95 million from ATMs and over-the-counter.

* Average spend per transaction was NZ$175 (US$113), which is much higher than in the previous quarter figures of NZ$153 (US$97.

* Cardholders from South Korea had the highest average spend per transaction in New Zealand (NZ$382 or US$245), followed by cardholders from Saudi Arabia (NZ$317 or US$203) and cardholders from Thailand (NZ$271 or US$174).

* Majority of international Visa transactions were conducted between cardholders and merchants in person (79 percent).

* Nine percent of the total international Visa spend in New Zealand occurred at online merchants.

Visa International (Australia, New Zealand & South Pacific) News Release Subject: Q4 Tourism Spending in NZ, Date: 7 May 2007, Page: 4 of 4 Notes on the report
* For the purpose of calculating average transaction sizes the report focuses on the 30 largest cardholder countries of origin, which account for almost 100 per cent of the total regional Visa spending by international cardholders in New Zealand. All data are based on transactions processed through VisaNet, Visa’s global transaction processing network, and include both consumer and business transactions.

* Major subindustries include the top 60 merchant types in term of visitors’ Visa spend in the most recent quarter.

* Spending is broken down into 10 broad spending categories, and can be further disaggregated into 28 sectors, 92 industries and 280 subindustries.

1 Excludes cash withdrawals.

ENDS

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