New Zealand's Tourism Sector Faces Rental Vehicle Shortage This Peak Season

For the first time in three years, New Zealand’s borders will be open to the whole world this 2023/24 summer season. Tourism operators and those that support the tourism sector in NZ have been steadily recovering post the Pandemic. With international tourist visitor numbers anticipated well in excess of 2.75 million this year (approx. 90% pre COVID), New Zealand now needs to be ready to deliver on its promise as a world class tourist destination experience.

But, are we ready?

“Not quite.” says Ben McFadgen, CEO of the Rental Vehicle Association of New Zealand. “Adverse weather events and their impact on New Zealand’s tourism regions over the last few months certainly haven’t helped. But we still aren’t at capacity yet either. We are so, so close! However, this year the sector will only be able to increase its new car rental fleet by approximately 15,000 vehicles. Leaving us still about 7,500 - 10,000 short.” he says.

Whilst operators had taken this into account when de-fleeting after last season - which pushes newer, safer lower emitting cars into NZ second-hand car fleet. Unanticipated events such as ongoing supply chain problems which effect the supply of new vehicles and the availability of parts, and major changes to the CCS – which have affected the cost of sales for vehicles; have had a massive impact.

“We don’t expect it to improve much either,” says McFadgen, “Right now, New Zealand’s motor vehicle industry is significantly challenged by the Government’s decarbonisation timeline, in particular the Clean Car Scheme. It will affect vehicle supply. It could potentially affect vehicle safety. We believe this puts New Zealand’s economic, and social health at risk.”

Mr McFadgen believes that there are many practical ways we can reduce emissions and increase safety on our roads. “Modern ICE and hybrid vehicles have advanced safety mechanisms and significantly lower emissions than earlier models. New Zealand has a challenge with the age of its car fleet. We believe that focusing on a more modern fleet is a viable way to transition to zero emissions. It benefits all Kiwis and it balances commerciality and infrastructure while giving New Zealand’s transport network time to decarbonise,” he said.

“We are firmly on board with the Government’s vision, but we want to work with them on finding a way through this that doesn’t break the bank or destroy what equity we already have. We believe that government working with industry is a more effective way forward.”

So, what is the advice the rental vehicle sector can give to renters this summer? “Book early, look around, consider maybe renting a car that’s a few years older and not brand new”, says McFadgen, “Just don’t leave it to the last minute or you will be walking, cycling or catching a bus. Not necessarily a bad thing for emissions reduction, but it may not be what you are looking for in a family holiday.”

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