"However, expenditure from Chinese visitors increased by 27 per cent to $522 million.
"China is now our third-largest tourist market and just shy of the $568 million spent by visitors from the UK."
China had already overtaken Germany and the United States and will soon become our second-largest visitor market, behind Australia, Ellis said.
The number of Australian visitors to New Zealand increased 6 per cent to 1.17 million but spending stayed flat at $1.6 billion.
Each tourist spent an average of 19.4 days in the country, down from 20.1 days in the year ended June 2011.
The average expenditure was $2300.
The International Visitor Survey is based on interviews with 5200 tourists per year departing from New Zealand airports.