Low kiwi yet to lift tourism

The drop in the dollar has already boosted overseas visitors' spending power but the inbound tourism industry does not expect to see the benefits until the arrival of next summer's holidaymakers.

George Hickton, chief executive of Government-funded marketing organisation Tourism New Zealand, is hopeful the drop has come soon enough to filter through to next season's tour package prices.

"I think it might get a bit tougher over the next couple of months, it always does at this time of year ... but everything's looking quite strong for next season so that's encouraging."

However, air fares were still the major determinant of visitor numbers to New Zealand.

"It's generally the most expensive airfare on the rank because we are further away than most other countries," Hickton said."So they are not looking necessarily to get a bargain of the century to come over here but, when they do get here, it's then a question of what they can do."

Hickton said tourists would generally budget for their holiday in their own currency.

This meant when the exchange rate increased, tourists got less for their money and the revenue of some operators took a hit.

However, visitor numbers for the first three months of the year had reached a record level.

"We're not getting the growth of 8 per cent or better that we've had from some years but it's still about 2 per cent better on the previous year."

Tourism Holdings is one operator which has felt the pinch from the high exchange rate.

In February, the company downgraded its profit forecast from $17 million for the year to between $14.5 million and $15.5 million.

Acting chief executive Ian Lewington said the prolonged high dollar had affected the spending of visitors at its attractions.

Tourism Holdings has a campervan rental business and runs some of the country's best known attractions, including Kelly Tarlton's and the Waitomo glow-worm caves.

"Rather than doing a bungy jump, a tandem skydiving and a cruise on Milford Sound they might only do one of the three of those," Lewington said.

Although overall visitor numbers had continued to grow, albeit at a lesser rate, the country the visitors came from told a more complex story.

A decline in key Japanese and Asian markets was, in part, balanced out by more short-term visitors from countries such as Australia.

Lewington said: "While they all count in the overall numbers, Australians are much more staying with friends and relatives and, therefore, they don't use as much of [Tourism Holdings] product."

Historically, there was about a nine-month lag between changes in the exchange rate and visitor numbers with the drop in the dollar looking to have come in time for next season.