29th February 2024 Recovery / TSA
The number of workers in the tourism sector increased by 48% after New Zealand re-opened its borders to international visitors.
Tourism continues to grow in Taranaki with increasing air passenger numbers, tourism spending, and guest nights.
The Auckland and Queenstown-based operator has fought its way back from Covid impacts and the Auckland floods to return more colourful than ever but challenges remain.
The best performing visitor market of 2023 was India, followed by Fiji and the Philippines.
The bank says the Chinese visitor market is flagging, leading to a more protracted recovery in New Zealand.
The government is seeking feedback on additional focus areas within the Royal Commission of Inquiry into Covid-19 Lessons.
They were once touted to be the fastest returning of NZ’s visitors but the youth market has been surprisingly sluggish, says an operator.
The association’s CEO says building “really strong relationships” with the new govt is vital as tourism gets closer to full recovery.
Bookings to New Zealand across all of Flight Centre’s worldwide stores were up more than 65% in the last three months of 2023, according to the travel agent.
While many are enjoying strong summer demand, some problems are getting worse, say operators.
What should the priorities be for operators and industry groups for the year ahead?
Operators report a record peak season, with accommodation in popular holiday regions soaking up strong demand.
This summer has been a welcome relief for regions like Northland and Hawke’s Bay, which were hit hard by extreme weather last season.
There is significant room for recovery across Asia, with Chinese outbound and inbound tourism expected to accelerate.
International arrivals are on track for an 87% recovery of Pre-Covid by September next year, according to the latest forecast from Tourism Export Council of New Zealand.
China’s slower recovery from Covid has constrained New Zealand’s tourism rebound, says ASB in its December 2023 Economic Forecast Update.
The global tourism industry could generate $2.26tr by the end of the year, closing in on the amount earned in 2019.
Tourism New Zealand says it achieved 10 out of 11 performance goals in its 2023 fiscal year, only failing on the level of its stakeholder engagement, according to its latest annual report.
All three markets are enjoying a good recovery in holiday visitor numbers.
The professional services firm shows that business sentiment in tourism has jumped from a year ago.
International tourism arrivals are approaching pre-pandemic numbers but growth is weakening as economies around the world contract.
Serko has reported a strong set of interim results following what it calls “high revenue growth” across its divisions.
The sector is “a ray of sunshine” in difficult economic times, says the bank.
The ITO association says its members are seeing a slight softening in demand for next year due to the ongoing high cost of flights.
US visitor spend in particular has surged, jumping by 146% in August compared to the same month in 2019.
The return of international visitors is helping to improve New Zealand’s economy and shrink the current account deficit, according to Finance Minister Grant Robertson.
International tourism has continued its strong recovery from the pandemic with arrival numbers reaching 84% of pre-pandemic levels between January and July 2023.
Tough economic conditions are not deterring travel, but fewer in the UK and Germany are considering NZ.
Reducing the reliance on just one or two large markets is a priority for Mackenzie’s operators, according to an industry survey.
Overseas visitor numbers from the United States to New Zealand in July have outpaced even pre-Covid 2019, possibly due to the FIFA Women’s World Cup, according to Stats NZ.
The major ITO says a strong recovery allows investment to help meet changing customer preferences.
Low tourism numbers, expensive flights, rising interest rates and other costs are contributing to a sluggish tourism recovery, according to respondents in a survey by former Bank of New Zealand chief economist Tony Alexander.
Visitor spend in the West Coast’s Westland District increased by 96% over the year to the June 2023 quarter – the strongest growth of any region, according to Development West Coast.
The 7-day isolation requirement for positive cases will be scrapped overnight, ending the last area of Covid friction for tourism.
New Zealand tourism has had a roller coaster year since the borders re-opened a year ago, says Tourism Industry Aotearoa.
One year after New Zealand’s borders started opening, the country’s major source markets have seen substantial increases in arrivals and are closing in on pre-Covid levels.
Plans for domestic travel spending over the next three to six months remain weak with Kiwis pessimistic about the economy, according to Tony Alexander’s latest spending plans survey.
New Zealand’s trade deficit narrowed to $3.2bn dollars in the March 2023 quarter, compared with $3.9bn in the March 2022 quarter, according to data from Stats NZ.
Rotorua businesses are feeling more upbeat about the future of the city, according to the latest Business Pulse report by RotoruaNZ.
The International Air Transport Association has reported high levels of confidence among travellers for the peak northern hemisphere summer travel season.
However, the majority of UNWTO’s panel of experts agreed that international tourism would not make a full recovery to 2019 levels until at least 2024 or later.
The region’s tourism has bounced back from a difficult pandemic, buoyed by the return of foreign tourists.
The industry is expected to generate US$9.5tn in 2023 and surpass pre-Covid earnings next year.
Overseas visitor arrivals rose to 266,900 in February 2023, up 261,600 from the same month last year because of the border being closed then, according to Stats NZ’s latest travel figures.
But Angus & Associates says the industry must remain “very mindful of sharing tourism’s benefits and eliminating its burdens”.
Plans to spend more on domestic travel have turned positive for the first time since November 2022, according to Tony Alexander’s April spending plans survey.
Increasing visitor expenditure and longer stays also prompts the association to increase its spending guidance.
“The challenge we have at the moment is capacity meeting demand,” says Emirates’ regional manager in NZ, Chris Lethbridge.
Aging products, a lack of capital investment during the pandemic, and staff shortages will be key challenges for New Zealand’s tourism industry, says Jucy cofounder and LyLo managing director Tim Alpe.
The government is providing a further $25m in grants to help more businesses in cyclone-affected regions with the clean-up and to get them back up and running.