Tourism industry boss: Recovery has plateaued as revenge holiday travel weakens

Tourism’s strong initial recovery has slowed, says Tourism Industry Aotearoa chief executive Rebecca Ingram, with holiday arrivals running at 40 per cent of pre-pandemic levels.

Total international visitor arrivals over the past few months are around 66 per cent of pre-Covid levels of close to 4 million arrivals a year. The very strong initial recovery has plateaued, which she said was not unexpected.

The key high-value holiday market had recovered more slowly than those visiting friends and family, which was at 78 per cent of pre-Covid levels in February.

The initial “revenge travel” surge had probably subsided and so New Zealand was now competing for the high-quality visitors that many rival destinations also want.

In this context, keeping New Zealand top of mind globally was critical.

Ingram said value-spending indicators were up.

“We are landing on the right side of the value over volume equation. In particular, we can see that domestic spend is also holding strong, indicating Kiwis continue to enjoy what New Zealand has to offer.”

Minister of Tourism Peeni Henare is concerned about steep price rises, particularly faced by Kiwis travelling around the country.

Ingram today said the domestic tourism industry - which was worth about 60 per cent of the $41 billion total spending before the pandemic - was an incredibly important part of tourism.

“In New Zealand and over the last 18 months, New Zealanders have really shown love and affection and commitment to the tourism industry in New Zealand and we don’t take that for granted,” she said.

“I know that our tourism industry [is] doing everything they can to ensure that they price fairly and competitively. And that is also my expectation based on the individual circumstances.”

Ingram was speaking at the industry event Trenz in Ōtautahi Christchurch. It is an industry showcase where overseas buyers of accommodation and attractions talk to New Zealand suppliers over the week, and this the first time it has been held in person since 2019.

Ingram said it had been a good first summer of open borders for many, and new ways of operating that were developed during Covid were now baked in with productivity gains and new products, and changes to the way attractions were offered.

In the TIA’s most recent survey, 27 per cent of tourism respondents said their summer capacity was operating at more than 100 cent of 2019 levels, with 22 per cent sitting at 76 to 90 per cent.

Workforce recovery has been a challenge. The survey revealed that 56 per cent of tourism businesses are still recruiting, but this was down from 75 per cent late last year.

“That shows good progress, but also signals that many businesses are altering their offering to fit their new workforce levels.”

She said the future of tourism in New Zealand would not look like the past.

“The DNA of the industry is forever changed as a result of the last few years, and it’s my view that New Zealand is uniquely well positioned to deliver a new generation of tourism. Tourism for good, tourism with net positive impact.”

Next-generation tourism, or regenerative tourism, was being created in New Zealand as the demands from consumers change and the expectations of New Zealanders also evolve.

Changes had been made to ensure the New Zealand tourism experience was one that New Zealanders could be proud of.

From legislative changes on freedom camping to community-led destination management plans and individual business innovations and moves on sustainability, she said a lot had been happening over the past few years.

Destination management plans were being developed. The plans provide region-specific but collectively cohesive destination plans that capture community wishes; identify, capitalise upon and protect a destination’s assets and characteristics; and also allow for investment needs to be well-signalled and planned for. There are now 30 Destination Plans covering New Zealand.

Another initiative is the Aroha of Tourism campaign, which TIA launched early this year, and brings to life the effect tourism has on the communities in which it operates.

Performers welcome guests to Trenz in Christchurch. Photo / Supplied

“TIA’s work partnering with over 100 tourism businesses to take their sustainability commitments into action further reinforces my belief that we’re an industry embarking on transformation from the ground up.”

Ingram said in a recent Infometrics report: “Tourism is a crown jewel in New Zealand’s economy, fortifying various industries, including retail trade, accommodation, and recreation services.”

“That’s great but let’s not get too cocky,” she said, describing this as a time to get out and hustle.

During four days of appointments, presentations, activities and networking functions for 1500 delegates at the Trenz event, more than 300 New Zealand tourism businesses showcase their products and services to more than 330 high-quality international buyers from 25 markets. Journalists from Australia, India and other countries are also at the event.

“Hosting Trenz is another fabulous milestone for our city, and we are excited to be showcasing one of the world’s newest cities to you,” said Ali Adams, the chief executive of host city agency ChristchurchNZ.

Trenz runs at Te Pae Christchurch Convention Centre from today until May 11.