International arrivals are nearing pre-Covid levels in New Zealand's adventure tourism capital of Queenstown. Photo / File
Queenstown operators are heading into summer on a high, buoyed by strong international visitor numbers and renewed optimism across the industry.
The latest Stats NZ figures show Queenstown Airport recorded about 192,000 international visitor arrivals between January and August 2025, up 14% on the same period last year, and just 5% shy of pre-Covid 19 pandemic 2019 levels.
The strongest growth came from holiday travellers, which rose nearly 20% year-on-year.
By comparison, nationwide visitor arrivals totalled about 2.6 million over the same period, also up on last year but showing slower growth than the Queenstown region.
Australia continues to lead the way, making up about 40% of all arrivals into Queenstown, followed by the United States and China, both of which have seen steady month-on-month increases as air capacity improves.
Tourism NZ chief executive René de Monchy said the outlook heading toward summer was positive, particularly from across the Tasman.
“This growth is accelerated by continued growth in air capacity and supported by our campaign activity in this important visitor market,” de Monchy said.
“While New Zealand is an ideal holiday destination year-round, the summer months remain our peak tourism season and we know operators around the country are ready and keen to welcome travellers here for a uniquely Aotearoa experience.”
He said the industry’s mood was upbeat, with many operators reporting stronger yields and a healthy market mix.
“Our aspiration is to reach 3.9 million visitors by the end of 2026, and we’re working hard to achieve this.”
The optimism echoes what Queenstown businesses are seeing on the ground.
Future Hospitality Group director Bert Haines, whose company runs several of Queenstown’s best-known bars and restaurants, said bookings heading into summer are looking stronger than at the same time last year.
“Visitor numbers are improving, and the hoteliers I’ve spoken to are sounding confident for January,” he said.
But while arrivals are returning, spending hasn’t fully caught up.
“There’s still a bit of that discretionary spend missing, we’re waiting to see that roll through.”
Australians remain the top spenders, he said, with Americans and Britons also contributing strongly thanks to favourable exchange rates.
Domestic visitors still make up the bulk of trade, “but they’re not spending what they were previously.”
Haines said the biggest challenge for Queenstown’s hospitality sector remains high staffing costs.
“We’re at the highest staff costs we’ve ever had,” he said, adding that wage inflation and a lingering shortage of skilled staff have squeezed operators.
“It’ll be tight through November, but by January we’ll have plenty of new arrivals coming in.”
Despite those challenges, he’s upbeat about where the town’s headed.
“Queenstown isn’t just about [adventure tourism] anymore - the food and beverage scene here is world-class. We’ve got restaurants getting hatted, wineries doing incredible work, craft beer trucks… there’s a real energy in town.”
Destination Queenstown chief executive Mat Woods said forward bookings were solid, particularly for high-end and group travel, though staffing and housing pressures remained a challenge.
“The challenge, as always, is ensuring the region can support the volume of visitors while maintaining the quality of the experience that makes Queenstown unique.”
He said the transition from winter into spring had been “smooth”, with local businesses busy through the school holidays and China’s recent Golden Week.
“It started off slow with snow but we’ve been 10% up on visitation for the winter season. That’s reflected in what we’re hearing from the ski fields as well,” Woods said.
“A lot of it has been driven from our Australian friends coming here to ski.”
He said domestic travellers remained Queenstown’s single largest market, followed by Australia, the US and China.
Woods said the district’s infrastructure remains the biggest handbrake on future growth.
“The one thing that’s probably constrained, that we could grow faster, is around infrastructure, particularly congestion and roading,” he said.
He pointed to innovative solutions being discussed locally, including a proposed gondola link between Queenstown Airport and the town centre, which could have the same impact as adding two new traffic lanes.
“That would buy us around 10 years’ worth of growth,” he said.
Woods said improving transport links would not just benefit visitors but also locals, who have experienced the pressures of rapid population growth.
“It’s about making sure the residents that live here have a great place to live, and then it’s also a great place to visit,” he said.
Queenstown’s resident population has grown about 70% in the past decade, he said, adding to pressure on roads and services.
“If we want to grow tourism faster, investing in infrastructure to move people around will be key.”
Ben Tomsett is a multimedia journalist based in Dunedin. He joined the Herald in 2023.