Tourism in New Zealand

Tourism is a large and growing part of New Zealand’s economy. It provides foreign exchange, jobs, and household income.

Tourism is shaped by, and closely connected to, our environment, our culture, and our society. All New Zealanders are part of the tourism sector, whether they are travelling away from home, hosting guests, or simply giving directions to someone in the street. The values of kaitiakitanga (guardianship) and manaakitanga (hospitality) provide the foundation for a uniquely New Zealand approach to the development of the industry.

Tourism affects all our communities. Directly or indirectly, it involves a huge range of businesses, from accountants and builders to hotels and supermarket workers.

Tourism and New Zealand’s economy

Tourism is important for New Zealand’s future economic growth. It contributes $18.6 billion to the economy each year—9% of New Zealand’s gross domestic product. It is also an important source of employment. One in every 10 New Zealanders works in the tourism industry.

Tourism is our largest export sector. International visitors contribute $8.3 billion to the economy each year, which accounts for 19.2% of export earnings . During 2006, 2.4 million international visitors arrived in New Zealand .

Unlike other export sectors, which make products and sell them overseas, tourism brings its customers to New Zealand. The product we are selling is New Zealand itself—the people, the places, the food, the wine, the experiences.

Domestic visitors are also a vital part of the tourism industry. They contribute $10.3 billion to the economy each year, and they help sustain tourism businesses during the low season . Product development for the domestic market provides a springboard for building export capability.

Tourism has many other advantages.

Tourism adds value to other export sectors by promoting the 100% Pure New Zealand brand internationally. It also adds value to industries within New Zealand that benefit from adding tourism experiences to their product offering, such as farm stays, factory tours, and winery restaurants.

Tourism helps drive regional economic growth and supports the revitalisation of towns and communities. This helps build regional pride and creates employment opportunities.

Tourism provides Maori with important opportunities to nurture, celebrate, and present their culture to the world. Maori culture, in turn, adds a unique dimension to tourism in New Zealand.

Tourism improves the value of national parks and other protected natural areas. It also benefits from them. The $8.8 million the Government spends each year on Fiordland National Park has helped generate 1600 jobs, $196 million in spending in the regional economy, value-added income of $78 million, and household income of $55 million. Concessionaires benefit from and add value to conservation lands.

Tourism has helped drive local government investment in infrastructure and leisure facilities, such as museums, art galleries, and convention centres. It has also encouraged urban renewal. This investment helps meet the needs of residents and visitors alike.

The future growth of tourism in New Zealand

Tourism is a large and growing part of the global economy. In 2006 there were 842 million international arrivals, an increase of 4.9% on the previous year. Total international expenditure on tourism was US$735 billion, an increase of 8.5%.

In the global context, New Zealand is a very small player, with just 0.3% of international arrivals and 0.6% of international tourism expenditure.

New Zealand’s international visitor arrivals have doubled since 1993, and they are expected to continue keep growing at a rate of about 4% a year. Domestic tourism is expected to grow more slowly—by about 0.8% annually. Income from international tourism is forecast to overtake that of domestic tourism by 2011.

NEW ZEALAND TOURISM FORECASTS 2007–2013

Component	2013 official forecast	Extended to 2015
International visitor arrivals	3.2 million arrivals or 4.0% annual growth	3.4 million arrivals
International visitor expenditure	$10.5 billion or 7.4% annual growth	$12 billion
Domestic overnight trips	18.3 million trips or 0.6% annual growth	18.6 million trips
Domestic expenditure (day and overnight trips)	$9.1 billion or 2.8% annual growth	$9.6 billion