20 August 2002

Positive Outlook For Tourism

The key role of tourism as a driver of the New Zealand economy has been reinforced by research announced today by the Tourism Minister, Mark Burton, who released the international visitor expenditure data and New Zealand Tourism Forecasts 2002-2008 the New Zealand Tourism Conference held in Wellington.

International visitor expenditure data reinforces the large and rapidly growing contribution that tourism makes to the national economy. International visitor expenditure in New Zealand increased by $597 million or 11.8% to $5.7 billion in the year to June 2002.

"The growth in earning represents a massive injection of new wealth to New Zealand, the importance of which cannot be overstated. It means jobs, increased business opportunities and a more diverse economic base within New Zealand, Mr Burton said.

The growth was driven by a 20.6% increase in earnings from the United Kingdom market to $824 million and a sharp growth of 86.2% from the South Korean market to $229 million. While the overall performance was strong, a number of markets recorded reduced earnings, with United States down 10.3%, Singapore down 29.6% and Germany down 8.4%.

"The results from these markets show that while the overall performance is strong, the effects of the September 11 events and weaknesses in international economies are clearly affecting the New Zealand tourism industry. This reinforces that the sector needs to continue to strive to maintain performance.

To highlight the future prospects of tourism, Mr Burton released the Tourism Research Council New Zealand's "New Zealand Tourism Forecasts 2002-2008".

"The forecasts very strongly reinforce that the trajectory of the sector is positive with international visitor nights to increase over the period by 56% and domestic nights increasing by 17%. In 2008, New Zealand will need to accommodate an additional 33 million visitor nights.

International expenditure is forecast to increase annually by 9.3% to reach $9.7 billion in 2008, or $4 billion more than current earnings.

"In effect, the forecasts issue a challenge to each of us to take the decisions needed to ensure that we can accommodate these levels of demand, and indeed that we meet this demand in a positive and proactive manner. The positive challenge was well anticipated in the New Zealand Tourism Strategy 2010 – the major government / sector planning framework developed in the first term of this government.

“This government is committed to continuing its strong policy response to the Tourism Strategy and working with sector stakeholders for the sustainable development of the tourism industry.

"We all need to consider our policies, investment and innovation processes, infrastructure and management approaches, marketing strategies and human resource requirements in light of the forecast demand levels.

"Within the forecasts there is a wealth of information that each of us will need to draw upon to inform our particular decision-making processes.

"Clearly, the future of the New Zealand tourism industry is positive and through the application of the knowledge and understanding contained within the forecasts, the New Zealand tourism sector will be better able to face the challenges and opportunities of the coming years."

Notes:

The forecast document "New Zealand Tourism Forecasts 2002-2008" is prepared for the Ministry of Tourism on advice from the Tourism Research Council New Zealand. This summary publication is available from the Tourism Research Council New Zealand stand at the Conference or from the Council's website at www.trcnz.govt.nz

The expenditure data is from Tourism New Zealand's International Visitor Survey with further information available at www.tourisminfo.govt.nz. This will be the last release of IVS data by Tourism New Zealand given the transfer of this survey from 1 July 2002 to the Ministry of Tourism to be purchased on advice from the Tourism Research Council New Zealand.

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