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Home / New Zealand

Job cutbacks as tourism sector slows down

NZPA
20 Nov, 2008 03:00 PM3 mins to read

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KEY POINTS:

Tourism operators are looking at making cutbacks as a result of fewer overseas visitors coming, and of those who do spending less.

Jobs at Millbrook Resort near Queenstown are set to go under a restructuring plan prepared in response to predictions of a poor summer season in the Southern Lakes district, the Southland Times reported.

Millbrook general manager David Onions said the economic slowdown and a drop in visitor numbers had forced the move to cut six jobs.

Air New Zealand said on Wednesday that it would lay off 200 staff after a fall in demand for long-haul travel in recent months.

Tourism growth has been consistently slowing over the past eight months, said the Ministry of Tourism, but small positive growth is continuing.

Ministry statistics showed international visitor arrivals were up by only 0.3 per cent in the year to August. Falling visitor numbers from Japan, Britain and South Korea contributed the most to the slowing.

There was a 9 per cent decrease (more than 11,000) in Japanese visitors, with Britain down 4 per cent (more than 12,000 visitors) and South Korea decreasing by 19 per cent, or more than 20,000 fewer visitors than in the year to August 2007.

But Australian visitor numbers were up by more than 31,000 in the same period.

Visitors are continuing to spend, although spending by tourists from the US, Germany and Taiwan fell by nearly 40 per cent between 2007 and 2008.

Ministry general manager Ray Salter said the drop in visitors from South Korea could be explained by changes in ticket pricing, while British visitor numbers were down from 2006, when Britons flocked to New Zealand for the Lions rugby tour.

New Zealanders had continued to travel overseas and spend, but the ministry was hoping they would stay in the country and spend money here, he said.

Tourism Industry Association chief executive Tim Cossar said it would take at least another 12 months for the situation to improve. "The market's under quite a bit of stress at the moment. The last thing we want is a cutback in expenditure."

Greg Beachen, owner of wine tour company The Grape Escape, said he had noticed a downturn in visitors, particularly in tourists travelling the country for three to six weeks.

The cost of flying to NZ was the main reason travellers were being put off, he said.

"It would be great if we could subsidise these airfares in some way to get them here. We should be offering cheaper flights ... instead of wasting [money] on advertising campaigns."

- NZPA

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