High dollar hits tourist arrivals

Difficult economic conditions and natural disasters in some of New Zealand's key international markets has tempered tourism growth.

September visitor arrival numbers show a year-over-year decline in tourists from three out of four of the country's largest markets: the UK, the US and Japan.

Overall, tourism numbers were flat in September, showing a modest 1.6 per cent increase compared with a year earlier. Statistics New Zealand data showed about 164,000 visitors came to New Zealand last month.

At the same time, there were 7.5 per cent more tourists from Australia last month against September 2004. Australia is the country's largest tourist market.

George Hickton, chief executive of Tourism New Zealand, said several challenges were putting pressure on the $17 billion tourism industry's growth.

He said fewer Americans were travelling due to difficult economic conditions resulting from higher energy prices and the impact of Hurricane Katrina, which hit the US Gulf Coast last month.

In September, there were 5 per cent fewer US visitors here compared with a year earlier.

Japanese tourists fell off the most last month, recording a 13 per cent decline or a drop-off of 1400 travellers from 2004.

Hickton said the high dollar was deterring tourists from the "price-sensitive" market of Japan.

Declines were also recorded from markets like Korea, down 6.7 per cent, and China, down nearly 5 per cent.

Hickton blamed the decline in Chinese travellers on competition from markets such as Australia and fewer students coming to New Zealand to study.

Tourism Industry Association chief executive Fiona Luhrs said a number of tourism operators "have found it a pretty lean winter". The industry is expecting visitor arrivals to grow by only 3 to 4 per cent year over year.

However, Hickton said the good news was that the decline was not likely to continue. Feedback from offshore wholesalers indicated summer bookings should be positive.