Boom time: Visitor spending up by $880 million

Tourists are drawn to New Zealand's scenic attractions. Photo / Supplied

Spending by international visitors increased nine per cent or $879 million to $11.1 billion in the past year.

The number of arrivals was up 4 per cent on the previous year to 3.78 million.

Average spending per visitor for the year to the end of June was also up four per cent and is now at $3290, according to the latest visitor survey figures from the Ministry of Business, Innovation and Employment

Visitors from most of New Zealand's major tourism markets benefited from a fall in the New Zealand dollar over the year, increasing their purchasing power.

The ministry's manager of sector trends Mark Gordon said China and the United States have contributed to the overall increase with both markets growing 11 per cent to $1.66 billion and $1.29 billion respectively for the year ending June 2018.

The number of visitors from China has increased by 13 per cent to 449,000, although the average spend per visitor fell 1 per cent to $4000.

However, spending from the US market was boosted both by increasing visitor numbers (up 4 per cent to 337,000) and an increase in the average spend per visitor, up 7 per cent to $4200.

"Of New Zealand's major tourism markets, Japan is the only one that showed a fall in spending, down 12 per cent. We have seen a decrease in spending by visitors arriving on package deals. Overall Japanese visitors are spending less when they are here with average spending per visitor falling 11 per cent." said Gordon.

However, there has also been growth in a number of emerging Asian markets, including India, Taiwan, The Philippines and Indonesia.

The surge in demand to come to New Zealand has led to more airline capacity serving this market. This, in turn, has led to more outbound services and cheaper fares for Kiwis travelling overseas.

The International Visitor Survey asks adult visitors to report on all of their spending, excluding international airfares. This includes all types of spending including cash, cards, tour packages and any spending before they arrived in New Zealand such as booking accommodation online.

While deficiencies in collecting the data have recently been identified, Tourism Industry Aotearoa chief executive Chris Roberts said the figures were in line with other evidence like credit card spending and anecdotal evidence that TIA is hearing from its members.

TIA had also been assured by MBIE that measures to improve the collection of data for the IVS have already been taken as a result of the recent review.

"So overall, we are comfortable with today's figures. It's certainly pleasing to see that visitor expenditure is solidly outstripping visitor arrivals, with spend up 9 per cent in the past year while arrivals grew by 4 per cent. On average, each visitor is spending more, and with the recent weakening of the NZ dollar that trend should continue, increasing the industry's contribution to New Zealand's economy."

The MBIE figures follow those from Stats NZ last week which showed an increase in the number of cruise voyages and passengers boosted cruise ship expenditure to $434 million in the year ended June.