Overseas tourists spend 9pc more

By SIMON HENDERY tourism writer

Overseas visitors are spending an average 9 per cent more during their New Zealand holidays than they did a year ago.

The boost in spending was welcomed by tourism leaders yesterday as a sign the industry is progressing towards its goal of increasing yields rather than relying on growing visitor numbers.

During the year to the end of March, tourists spent an average $3256 while in the country, up 9 per cent from the average of just under $3000 they spent over the previous year.

Total spending by international visitors increased by $635 million, or 13 per cent, to $5.5 billion over the year, according to figures compiled by Tourism New Zealand.

Over the same period visitor numbers increased by 5.8 per cent to 1.95 million.

Tourism New Zealand's international visitor survey asks one in every 18 short-term adult visitors leaving the country how much they spent during their visit.

Tourism NZ chief executive George Hickton said the figures provided an important indicator of progress within the industry.

"There have been fluctuations in the numbers of visitor arrivals over the past six months post-September 11 [when terrorists flew planes into the World Trade Centre and the Pentagon]," Hickton said.

"However, these expenditure figures show that those who have been travelling to New Zealand are continuing to increase their spending while here."

The benefits to the sector of increasing the average yield per tourist were spelled out in the blueprint New Zealand Tourism Strategy 2010, released a year ago.

The strategy said a 1 per cent increase in spending by all visitors generates the same economic result - a $1 billion rise in revenue - as a 12 per cent rise in tourist arrivals.

Despite the overall positive tone of yesterday's expenditure figures, they also revealed some of the economic fallout to the tourism sector of last September's US terror attacks.

Total spending by US and Japanese visitors were both down 5 per cent for the year (to $766 million and $662 million respectively).

As visitor numbers from Korea rose 32 per cent over the year, that market recorded the biggest rise in total spending, up 107 per cent to $223 million.

Total spending by British visitors was up 13 per cent to $777 million.

New Zealand's largest market, Australia, was unchanged at $907 million and German spending was down slightly from $199 million to $197 million.

The figures were released on the final day of the Tourism Rendezvous New Zealand (Trenz) trade show in Auckland, where more than 400 tourism companies have been doing business with more than 400 overseas buyers from 36 countries.

John Moriarty, chief executive of the Tourism Industry Association, which runs Trenz, said exhibitors had been reporting an increase in the "quality" of deals they were doing with overseas buyers.

Increased interest in New Zealand as a holiday destination has been reflected in buyers placing larger orders with a focus on higher-quality products and services.

New Zealand's international profile has been boosted by The Lord of the Rings publicity and - since September 11 - a growing perception that it is a safe destination.