Tourism arrivals are approaching pre-Covid levels, driven by a weak dollar and initiatives such as the Government’s “Everyone Must Go” campaign, which has helped boost Australian visitor numbers.
In February, Prime Minister Christopher Luxon and Tourism and Hospitality Minister Louise Upston announced a new $500,000 tourism campaign to attract more Australian travellers to New Zealand.
The campaign aired across Australian radio and social media, exceeding its initial target and leading to an additional $13.5 million investment in international tourism marketing.
“It certainly lifted our Australian numbers,” Luxon said in June.
With Australian visitors increasing by 153,000 to 1.5 million in the year to October, and a record number arriving in October alone, Tourism Hospitality Limited chief executive Grant Webster told Newstalk ZB’s Heather du Plessis-Allan the campaign had paid off.
“Look, you spend in that market and you get good airline capacity, and watch what happens.”
Asked what exactly was enticing Australians here, Webster said New Zealand was currently positioned as a relatively cheap destination compared to North America and Europe.
“Plus, some very strong marketing from Tourism New Zealand.”
The Tourism NZ campaign was initially ridiculed by the Opposition, with Labour tourism spokeswoman Cushla Tangaere-Manuel saying it made New Zealand sound like it’s in a “clearance bin at a sale”.
Other critics panned the slogan as tone-deaf as Aotearoa faces record emigration, with one listener telling RNZ there was no need to market the country with the increasing number of Kiwis basing themselves in Australia.
Upston later declared the campaign a “winner” for exceeding its initial target of 6750. By bringing nearly 8000 additional Australians to New Zealand, an estimated $22 million was injected into the economy.
Visitors from China - a key market for Aotearoa’s tourism industry - still fall well short of pre-COVID levels, hovering at around 55%.
Despite their slow recovery, Webster expected the balance to improve as visa processes were streamlined.
“I think it’s just a matter of time. It was a lot later start,“ he said.
“The latest change in allowing Australia visas in certain situations to flow through for Chinese makes a big difference. October was a bigger lift, actually.
“So I think we’re on the right track now for China, and we’ll get back there.”
Tourism Holdings Ltd - New Zealand’s biggest tourism company and the world’s largest holiday vehicle provider - were projected to see a 20% increase in revenue this summer, showing confidence in the industry.
The company is also closing its Brisbane manufacturing plant next week and plans to move all production of its commercial RVs to Hamilton’s Action Manufacturing.
“We’re a cheaper destination to manufacture,” Webster said.
“Our labour rates are cheaper, rent is cheaper... So sad reality for Australian manufacturing, unfortunately, the right thing for us to do.”
The closure would rdisestablished in Australia, with frontline reductions offset by increased production in New Zealand.
Tom Rose is an Auckland-based journalist who covers breaking news, specialising in lifestyle, entertainment and travel. He joined the Herald in 2023.
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