International tourist spending in New Zealand has rebounded to pre-COVID levels, the latest figures released by Stats NZ reveal. In contrast, domestic tourism has experienced a decline.
The annual tourism satellite figures show international tourism expenditure surged by up to 60%, reaching $16.9 billion, closely aligning with the 2019 figure of $17.2 billion.
The most notable growth in international spending came from Asian visitors, whose numbers increased by an impressive 168% year-on-year. Other notable increases were seen from visitors from the Americas (up 59.1%), Europe (up 25.9%), and Oceania (up 18.4%). Additionally, international student expenditure—defined as those studying for less than 12 months—rose by 76.2%, amounting to $3.8 billion, which includes course fees, living costs, and airfares.
Domestic tourism has dropped
Domestic tourism has experienced a decline, with expenditure dropping by 2.5% to $27.5 billion following a previous increase of 11.2% the year before. Household tourism spending also fell by 5.8%, totalling $1.3 billion. Overall, total tourism expenditure for the year reached just over $44.4 billion, marking a 15% increase from the previous year.
In terms of tourism employees, the number of people working in the sector has reached 159,030, representing 6.4% of the overall workforce.
Meanwhile, the number of tourism businesses has increased to 23,697.
In January, Minister for Economic Growth Nicola Willis identified increasing tourism numbers as a top priority for New Zealand’s economic strategy.
“We want to welcome them—we need to bring in that money and get dollars circulating in our economy,” Willis said in a statement.
Following Willis’ announcement, Queenstown Mayor Glyn Lewers highlighted the urgent need for financial support to enhance infrastructure, including roads and utilities, in order to effectively accommodate the growing number of visitors.
“If that is to increase, I would expect a very serious investment in actually accommodating those visitors because a small ratepayer base cannot sustainably keep supporting the tourism industry, especially when those GST receipts or the economic, financial growth that we create is sent up to Wellington,” he said.
Earlier this month, Prime Minister Christopher Luxon unveiled a $500,000 tourism campaign targeting Australian visitors, featuring the slogan “Everyone Must Go.”
However, the campaign has faced backlash for its perceived insensitivity and tone. In a conversation with RNZ, tourism spokesperson for the opposition Labour Party, Cushla Tangaere-Manuel, said that the new slogan “Makes New Zealand sound like we’re in a clearance bin at a sale.”.
Meanwhile, others have associated the tagline with the need for restroom facilities, suggesting that the phrase “Everyone Must Go” might allude to the lack of toilets in various high-traffic tourist areas.