Stats NZ figures show tourism numbers flatlining despite recovery in some markets

Tourist numbers are at 83% of pre-Covid levels. Photo / Mike Scott

Overseas visitor arrivals are running 17% below pre-pandemic levels, despite a rise in tourist numbers from China, the United States and Australia.

The number of visitors totalled 3.2 million in the June 2024 year, according to data released by Stats NZ today, as industry concern grows about the impact of rising charges on the tourism recovery.

This was up 676,000 (27%) from the June 2023 year, but tourist arrival numbers have been marooned near 80% of pre-Covid levels for about a year for the sector, which had been New Zealand’s biggest foreign exchanger earner.

Air capacity is now running near 86% of 2019 levels and has flatlined since late last year.

Despite the increase shown in the Stats NZ figures, overseas visitor arrivals in the June 2024 year were 17% lower than the record for a June year of 3.9 million in 2019.

For the June 2024 year, Australia (1.3 million) was the main source of visitor arrivals, followed by the United States (378,000), China (231,000), Britain (170,000) and India (84,000).

For the June 2024 year, visitor arrivals from India were 130% of their level in the June 2019 year.

Visitor arrivals from the United States were 103%, Australia 86%, Britain 73%, and China 55% of their respective levels in the June 2019 year.

Overseas visitors are people living overseas who are in New Zealand for less than 12 months and include New Zealand and non-New Zealand citizens.

Tourism Industry Aotearoa (TIA) and NZ Airports have expressed disappointment with the increases in immigration fees for visitor visas and working holiday visas announced last week.

These fee changes come at a time when the tourism industry is striving to recover, and the Government risks undermining New Zealand’s appeal as a destination, TIA says.

TIA chief executive Rebecca Ingram said, “The substantial increases in visa fees are a blow for our industry. These additional costs will create a barrier that will deter visitors from choosing New Zealand.”

The new fee structure will mean the cost of a visitor visa rising by $130 to $341 (61% increase) and a working holiday visa rising by $250 to $670 (59% increase). Coupled with the potential increase to the international visitor levy, TIA says this will significantly elevate the cost to visitors and affect demand.

Grant Bradley has been working at the Herald since 1993. He is the Business Herald’s deputy editor and covers aviation and tourism.