The number of international visitors surged by 5 per cent to 2.86 million last year, putting the tourism industry on track to earn $41 billion a year in the next decade, a sector group says.
The Tourism Industry Association said the visitor data showed 2014 was a record year and it outperformed the government forecast of 2.805 million arrivals for the year.
"It's great to see so much of the growth coming from holidaymakers, where arrivals grew by 6.9 per cent, while people visiting family and friends grew 3.5 per cent," said TIA chief executive Chris Roberts.
"On average holidaymakers spend almost $3700 each during their visit, so the growth in the holiday market means the additional 87,800 holidaymakers New Zealand attracted in 2014 added about $325 million to our economy."
All of New Zealand's most valuable visitor markets showed growth in 2014. Arrivals from our biggest market, Australia, grew 2.4 per cent, while China was up 15.7 per cent, the United States 9.5 per cent, Britain 1.5 per cent and Germany 13 per cent.
The growth in arrivals seen in 2014 is continuing into 2015, with January being very strong around the country and demand set to continue through February and March.
"We're expecting a record Chinese New Year in addition to Cricket World Cup, as the tourism industry continues to strongly grow its contribution to our economy," Roberts said.
Tourism New Zealand chief executive Kevin Bowler said both Germany and the US are long-staying, high-value visitors.
"We know that these results are strongly linked to our efforts in promoting New Zealand as the real Middle Earth.
"We can see that the industry is reaching capacity and over this peak period, the 'no vacancy' sign-is out. As far as problems go, it's a positive one to have," he said.