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Home / Business / Markets / Currency

Travellers revelling in high NZ dollar

NZ Herald
1 Aug, 2011 05:30 PM2 mins to read

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Photo / Thinkstock

Photo / Thinkstock

The New Zealand dollar's rally against the greenback is feeding Kiwis' appetites for a Stateside holiday, travel agencies say.

Flight Centre spokeswoman Marie Pilkington said the company had seen an almost 30 per cent increase in bookings to the United States in the year to July 2011, compared with the prior 12 month period.

Statistics New Zealand figures show short-term resident departures to the US increased 9 per cent in the year to May compared with last year.

Pilkington said Hawaii was becoming a popular destination for Kiwis who had visited other Pacific destinations but always viewed the US island state as expensive.

The cost of entering US attractions at present exchange rates highlighted the current buying-power, she added.

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Flight Centre said entry to Hollywood's Madame Tussaud's wax museum would have cost New Zealanders $51.02 in March 2009, when the New Zealand dollar was trading as low as US49c. Last week, with the kiwi at US87c, entry to the same attraction cost just $28.72.

House of Travel retail director Brent Thomas said bookings for trips to the US had increased by almost 10 per cent in the year to June.

Travellers were also taking advantage of favourable exchange rates against the euro and British pound and holidaying in the UK and Europe, he said.

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Thomas said the New Zealand dollar's strength meant people were able to spend longer overseas and take part in more activities while abroad.

"Typically we're seeing additional cruise bookings on the back end of a European holiday - simply because the dollar is going just that much further," he said.

Thomas said while New Zealanders were spending longer on holiday and taking part in more activities - they were spending less than in the past.

"The long haul travel average spend is down by 2 to 3 per cent this year."

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But while the currency situation was great for Kiwis travelling offshore, Thomas said the New Zealand dollar's strength made this country more expensive for many overseas visitors, which was taking a toll on arrival numbers.

Kiwibank communications manager Bruce Thompson said the strong dollar was driving demand for the bank's Loaded for Travel Visa card.

Up to four foreign currencies - including the US dollar and British pound - can be loaded on to the traveller's card.

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