Softening in International Tourist Spend

Media Statement

Softening in International Tourist Spend

Wednesday 25 February 2009
For immediate release

Spending by international visitors fell by 3.2% to $5.9 billion in the year to December 2008 according to data released today by the Ministry of Tourism.

“A reduction in overall tourism spend is in line with the performance of international visitor arrivals and reflects the challenging trading environment over the past year,” said Bruce Bassett, Ministry of Tourism Research Manager.

“The international economic position is difficult and has clearly impacted on tourism; although it is reassuring that the impact has not been greater.

Many of our key markets have maintained significant spending contributions over the year, with some increasing - Australia (down 1.2%), Germany (down 2.7%), China (down 2.8%), Canada (up 21%) and Japan (up 0.1%). Against this, there has been a marked weakness in some of the Asian markets, with South Korea and Taiwan down 22.3% and 34.1% respectively.

“The important UK and US markets were down by 6.8% and 7.5% respectively, but together still contributed $1.5 billion to the New Zealand economy.”

The suite of sector indicators all show a consistent picture of the 2008 year that was impacted early on by high oil costs and unfavourable exchange rates, and latterly by the Global Financial Crisis.

The other main indicators for 2008 are: international visitor arrivals (down 0.3%), New Zealand outbound travel (down 0.7%) and commercial accommodation nights (down 0.05%).

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ENDS

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