Business Update

Tourist spending slows

"We aren't seeing the growth we are used to. While overall spending by international visitors is stable for the year, it is clear that the global financial crisis is starting to have an effect," said Bruce Bassett, Ministry of Tourism Research Manager.

Mr Bassett said that, as arrival numbers softened and economic concerns grew, it was natural that tourism receipts would also be affected.

“Tourism is a discretionary activity, and it is our sense that our customers around the world are being careful in their travel decisions in the current environment.”

"While the indicators aren't favourable for tourism just now, we do know that tourism is an extremely resilient industry and history shows that it recovers well. What we don't know at this stage is the depth or duration of the current downturn, and consequently when this recovery will occur."

Spending levels by key markets increased for visitors from Australia (up 7.5 percent to $1.7b), the UK (up 4.1 percent to $970m), Japan (up 0.8 percent to $407m), Canada (up 1.9 percent to $122m) and Singapore (up 9.5 percent to $65m).

Decreases in spend were recorded for visitors from the US (down 15.8 percent to $590m), Germany (down 3.2 percent to $242m), China (down 10.4 percent to $241m), South Korea (down 1.8 percent to $235m) and Taiwan (down 23 percent to $53m).

For further information on the release of International Visitor Survey data please visit the Ministry of Tourism research website (www.tourismresearch.govt.nz/ivs) or contact Bruce Bassett, telephone (04) 498 7448 or email bruce.bassett@tourism.govt.nz.