International visitor numbers stuck at 85% of pre-Covid levels

The Routeburn Track is one of New Zealand's 10 Great Walks. Photo / Stewart Nimmo

Overseas visitor arrivals were 240,200 in October, an increase of 14,200 from October last year but 15% down on pre-pandemic levels.

Stats NZ figures show the annual arrival total to October was just over 3.2 million, down around 17% on the bumper 2019 year and just ahead of numbers last seen in 2015.

While annual spending is on par with pre-pandemic levels (about $11.2b in the year to March), the country has lost four years of spending growth since borders were closed in March 2020 before their gradual reopening from 2022.

ASB senior economist Mark Smith said October saw the NZ international visitor levy lifted to $100 (from $35), but this does not look to have impacted visitor numbers.

Annual arrivals ticked up in most major markets (Australia, Europe and the Americas) but have essentially flatlined at 245,000 in China, well below pre-Covid (455,000) peaks.

‘’The resilience of some higher spending visitor markets (notably the US) and the higher cost of travel post-Covid that expenditure by overseas tourists in NZ is likely already back to where it was pre-Covid,‘’ he said.

``The challenge will be to continue to grow the sector at a time of heightened uncertainty over what 2025 will bring to the global economy.‘’

Of the 240,200 overseas visitor arrivals in October:

• 46% were from Australia (compared with 43% in October 2019)
• 9% were from the US (8% )
• 7% were from China (10%)
• 5% were from the UK (5%)
• 3% were from India (2%)
• 3% were from Germany (3%).
  
  

Infometrics said arrivals from Australia remained strong at 107,599, remaining above 100,000 for the fourth consecutive month.

Arrivals from Australia were at a solid 90% of pre-pandemic levels in October 2024, having held at or above 90% for the third consecutive month.

New Zealand is competing hard for Aussies against other destinations.

The Australian Travel Industry Association’s (ATIA) latest figures show rapid growth in other markets.

In October, 1.66 million Australians departed for international destinations, a 12.1% increase on the same month last year.

Japan recorded an astounding 73.8% year-on-year growth (567,330 Australians travelling for the year to October compared to the same period the previous year). Vietnam was up 35.4% (423,630) and Indonesia was 26% (1,644,010).

In terms of total travellers, Indonesia was the top destination, followed by New Zealand at 1.3million up 8.2% and the US at 732,490 (up 13%).

October made for another good month for Queenstown Airport arrivals, with arrivals at a record-high 139% of pre-pandemic levels. Arrivals at Auckland Airport distantly followed at 80% of pre-pandemic levels, and 78% at Christchurch and Wellington, Infometrics said.

While the pace of recovery visitor arrival numbers has stalled around the 80% to 85% mark for the last year, the number of Kiwis travelling overseas has nearly recovered to pre-pandemic levels.

The total number of New Zealand-resident traveller arrivals in October was 98% of the 326,400 in October 2019 (before the Covid-19 pandemic).

Most popular places for Kiwis in October were Australia with 42% of the total, Fiji 7%, US 6%, China 5%, Britain 5% and the Cook Islands 4%.

Grant Bradley has been working at the Herald since 1993. He is the Business Herald’s deputy editor and covers aviation and tourism.