Tourism poised for a cracker summer

Friday, 22 December 2023

Tourism numbers have climbed back to about 80% of pre-Covid levels.

The tourism industry is feeling positive as all indications point to a solid summer season ahead, according to Tourism Industry Aotearoa.

A recent survey by the industry group showed 84% of tourism businesses were feeling optimistic about the next few months.

“That's a major turnaround in sentiment from the start of the year,” said Tourism Industry Aotearoa (TIA) chief executive Rebecca Ingram. “It just shows what a difference a year can make.”

The Covid-19 pandemic caused unprecedented disruption to tourism, with a massive fall in international demand amid widespread lockdowns and travel restrictions put in place by countries in order to contain the spread of the virus. That had a huge impact on tourism companies who rely on international travellers.

The United Nations World Tourism Organisation notes international travel plunged by 72% in 2020, the worst year on record for tourism, resulting in 1.1 billion fewer international tourists worldwide.

But once borders re-opened, international tourism bounced back stronger than expected due to “extraordinary” pent-up demand, threatening to overwhelm an industry that came out of the pandemic weakened and understaffed.

Bank of New Zealand chief economist Mike Jones said tourism numbers had now climbed back to around 80% of pre-Covid levels.

Tourism Industry Aotearoa chief executive Rebecca Ingram says businesses are feeling optimistic heading into the peak summer season.

Jones expects the trend recovery should continue next year, albeit at a slower pace than what we have seen to date.

New Zealand is now approaching its second peak summer tourism season after the country’s borders fully opened.

Ingram said feedback from TIA members indicated that the tourism season started picking up early in November for many businesses.

The industry body represents about 1300 business ranging from small owner operators to large publicly listed corporates and international hotel chains.

“We know though that the recovery so far has been uneven, and there are some regions that were particularly hard hit by adverse weather last summer, such as Gisborne and the Coromandel, which will be extremely keen to see visitors return,” she said.

At the same time, she acknowledged the many New Zealanders who were preparing to head on their summer holiday after a tough year.

“Kiwi visitors are still the backbone of the tourism industry, and continue to underpin our recovery,” she said.

“We thank them and we’re looking forward to offering them some well-earned relaxation and the manaakitanga we’re famous for.”