Bay Christmas spending up 5.2pc

More cruise ships is one of the reasons for the rise in shopping at the Mount.

A Bay bar manager says the next week leading into Christmas will "make or break" bars and cafes in the area.

Statistics released by Paymark reveal Bay of Plenty residents swiped away a total of $147.5 million in the first two weeks of the Christmas break - a 5.2 per cent increase from December 2013.

The data also revealed a 7.7 per cent increase in Eftpos transactions compared to the same time in 2013 with 3.01 million transactions recorded for the first half of December this year.

Manager at Breakers Cafe and Bar in Mount Maunganui Sheilla McKelvie said the summer period was crucial to the survival of many businesses in the Mount.

"We rely on this time of year to get us through the winter months when business in the Mount really slows down. It has been great because we have had to hire more staff and are ready for the rush.

"It has definitely been busier in the last two weeks than last year. We have had a very good month so far with good turnover and we expect it to get busier as Christmas draws closer."

An increase in cruise ships is one of the main reasons for the rise in spending, she said.

"There have been a lot more big ships coming into the harbour and docking at the Mount. This has been great because the ships bring lots of tourists who spend money in the bars and cafes in the area."

Ms McKelvie said the influx of tourists had been a positive boost for the Mount community.

"For business and everyone that lives here, it has been fantastic to have more ships docking here."

Paymark's head of sales and marketing Paul Whiston said the first two weeks of the festive season reflected a steady start to Christmas spending.

"Despite lower petrol prices impacting on the overall spend, the annual growth rate - excluding fuel - is still a solid 5.7 per cent."

He said cooler weather and Boxing Day sales were likely to be having an impact. "We know from MetService figures that it's been the coldest start to summer since 2006 which may influence shopping behaviour. Additionally, an increasing number of retailers are starting their Boxing Day sales before Christmas. This may result in an increase in the number of transactions we're processing but the value may be slightly lower."

On a regional scale, Mr Whiston said there were a number of factors affecting how much New Zealanders living in these areas could spend.

"It is important to look at wider economic influences, how that may be affecting people's ability to go shopping and spend.

"It is widely known that the Fonterra dairy prices are down so that might be influencing some of the rural communities.

"Metropolitan areas, on the other hand, are doing really well ..."

Spending in the entertainment and hospitality sector was up by 9 per cent from 2013 while the supermarket spend was also up by 7.9 per cent. More Kiwis were also spending in the building and housing sector, with an increase of 7.2 per cent, while spending on books and videos also rose by 6 per cent.

Paymark data revealed the biggest increase in spending was in Nelson and Otago with rises of 7.7 per cent and 7.2 per cent respectively.

Southland, South Canterbury and Taranaki were the only regions where spending decreased.NZME.