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Has the bubble burst for Tourism

23 Jan

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The news from Statistics New Zealand does not bode well for the Tourism industry.Although those of us in the industry have seen the writing on the wall for some time.
International visitors spent $5.6 billion here in the year ended September – a drop of 3.3 per cent on the previous year.
Data from Statistics New Zealand shows short-term overseas visitor arrivals for the year ended November were up 2.5 per cent at 2.6 million. But ,visitor expenditure was a bigger challenge than the number of arrivals.
According to the Ministry of Economic Development, international visitors spent $5.6 billion here in the year ended September, excluding international airfares, which was a drop of 3.3 per cent on the previous year.
Overseas visitors did not have as much money to spend and the value of the New Zealand dollar meant it could be worth less when translated into local currency.
Three-quarters of the growth in arrivals during the next five years was forecast to come from Asia and Australia, which were predominantly short-visit, low-spend markets.
Short-term overseas visitor arrivals from Britain and the US for the year ended November were down by 2.6 per cent and 4 per cent respectively, while China was up by 17.5 per cent.
The only problem facing the general Tourism market with the China market is that the cash flow is negative for the majority of the industry. The Chinese market is guided tours by Chinese operators.The cash flow does not spread itself throughout the country like the FIT market.

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