Weak Oz no threat to tourism

Skyline Rotorua general manager Bruce Thomasen

A weak Australian dollar is unlikely to have a significant impact on the tourism industry in Rotorua, according to attraction owners and operators.

The dollar has been falling steadily against its Kiwi counterpart in recent weeks, and the chief executive of the Tourism Export Council has suggested that the industry might take a hit from reduced Aussie spending power.

Skyline Rotorua general manager Bruce Thomasen said his attraction's trade in Australian visitors had remained solid over the summer, despite months of sliding exchange rates.

And Mr Thomasen was not convinced that the current situation in the currency markets would lead to problems further down the line.

"I'm not overly concerned. New Zealand offers a good experience and great value that we do deliver, regardless of the dollar parity."

Last week, the exchange rate reached almost 1 to 1, although this has since fallen.

Mr Thomasen also cited competitive transtasman airfares as a reason why Aussies would continue coming to visit, despite their weaker currency.

Nearly 500,000 visitors came to New Zealand from across the Tasman last year, spending $2 billion on their travels.

Phill Barclay, managing director of Volcanic Air, was equally sanguine about the chances of a currency-related dip in the tourism industry.

He admitted there might be a minor effect, but that it wasn't causing him any sleepless nights.

"I think everyone is going to find a bit of a reduction in the Australian visitor, but it probably won't affect our business greatly."

For Volcanic Air, it is the US dollar, rather than the Australian, that is king. Mr Barclay said the greenback was the currency used for the benchmark for all helicopter flights worldwide.

Mr Barclay even suggested that, although it would not have a great effect on tourism here, the sector in Australia might stand to benefit from Kiwis taking advantage of the cheaper currency to travel over and stay longer.

The owner of Rotorua-based tour operators Grumpy's, Darrin Archer, agreed that the fall in the Australian dollar did not signal a catastrophe for the tourism sector.

Mr Archer believed the effect on his business would be minimal since Australian usually plan their own itinerary.