Summer Months Holding Up for New Zealand Tourism

Around the world, Governments are clamouring to find ways to rescue countries from harsh recessions not seen since the close of the Second World War.
The slowdown, which started in the US at the start of 2008, has now rolled around the world taking Britain and Japan with it. The resulting slow down in developed countries has now hit China’s export industry and demand for commodities from Australia has fallen dramatically.
For those in the New Zealand tourism industry, the roll-call of countries listed will be all too familiar. They make up the backbone of the tourism industry and make up the five biggest countries in terms of visitor arrivals.
But each market has its own dynamics and is moving at its own pace to deal with the financial crisis.

USA
Arrivals up 1% December
Total arrivals for the year down 1.7% to 212,410
The USA, the first into the recession and the centre of banking collapses, has been in recession for a year but during that time a new President has brought in a ray of hope. Billions of dollars have been poured into failing banks, the car industry and “shovel ready” projects – Government funding for infrastructure projects aimed at keeping unemployment down and the economy moving.
Tourism New Zealand’s chief executive George Hickton says the US is still in the midst of recession and concerns about job security are widespread. However, there are also people still working and looking to travel.
A weaker New Zealand dollar and discounted airfares are making New Zealand a more affordable place to visit for the first time in years.

UK and Germany
UK arrivals down 4.5% December
Total arrivals for the year down 2.6% to 285,094
Germany arrivals up 8.8%
Total arrivals for the year up 4.2% to 62,300

Japan
Arrivals down 14.4 % December
Total arrivals down 15.8% for the year to 102,482
Japan continues to disappoint and the economic situation there had deteriorated. Japan entered recession – two quarters of negative economic growth – in mid November and the country’s reliance on exports has lead to a serious slow down and job losses.

China
Arrivals up 1.8% December
Total arrivals down 7% for the year to 112,398
China’s economy has slowed from 13% in 2007 to 6.8% last year, but Shanghai, the centre of Tourism New Zealand’s campaign work, continues to show confidence.

Australia
Arrivals up 5.6% December
Total arrivals up 2.7% for the year to 976,200
Tourism New Zealand is looking to its closest market, Australia, to help weather the immediate storm and Mr Hickton says New Zealand is well-placed in Australia right now. The Australian dollar is weak against most major currencies, aside from those of New Zealand and Canada. There is plenty of air capacity and fares are low.

LOOKING AHEAD
Mr Hickton said the December arrivals figures – with total visitor arrivals up 1.6% for the month – had shown the year closed on a more positive note than anticipated.