Business Update

Tourism confidence continues to improve

Ministry of Tourism Research Manager, Bruce Bassett, said that overall, optimism in the industry was tracking in the right direction, although this wasn’t the case for all operators.

“Tourism is a very broad industry and we’re mindful that while business is good for many, others are still hurting. We’re not out of the woods yet, but the industry’s mood is heading in the right direction and there is optimism about the summer period.”

Just over half of businesses surveyed (52%) expect demand to improve over the next three months and under one third (29%) expect demand to fall, with the balance expecting their situation to remain the same.

Lack of demand continues to be the main factor limiting business performance, cited by three quarters (75%) of businesses surveyed. Competition and discounting also continue to limit performance, cited by 38% of businesses.

The Tourism Industry Monitor is an industry wide initiative. It is designed to provide the industry with monthly information on the performance of the tourism sector, including the short-term outlook. It is led by the Ministry of Tourism, the Tourism Industry Association, Tourism New Zealand and the New Zealand Hotel Council.

For a copy of the Tourism Industry Monitor visit www.tourismresearch.govt.nz/tim.

For further information, please contact Bruce Bassett – Research Manager, Ministry of Tourism – 021 609 674.