10pc surge in visitor numbers

By KARYN SCHERER

The tourism industry is celebrating one of its most spectacular years ever, with official data confirming a 10 per cent surge in visitor numbers over the past year.

Statistics New Zealand figures released yesterday show nearly 1.7 million visitors arrived in the year ended June - around 170,000 more than the previous year.

The growth, which is as good as anything experienced in the 1980s boom, meets ambitious targets set by Tourism New Zealand last year, and follows confirmation that visitors are also spending more while they are here.

In the year ended March, tourism contributed $4.3 billion to foreign exchange earnings - even higher than Tourism NZ had been aiming for.

Chief executive George Hickton yesterday acknowledged that the figures had been significantly boosted by the America's Cup.

He also acknowledged that the industry had been helped by strong economies in its target markets, and the weakness of our own dollar.

However, he said the board was delighted with its controversial new marketing campaign, for which at least $20 million has been set aside for each of the next few years.

Mr Hickton noted the number of German visitors, for example, had increased by 12 per cent over the past year, after six years of steady decline.

The board is also optimistic the crucial Japanese market may finally be on the way up.

Japanese tourists are renowned as the biggest spenders, and Mr Hickton said the board was encouraged by a recent turnaround in numbers.

"It really means that all of our major markets are growing again."

International forecasters are predicting 8 per cent growth in tourist numbers to the South Pacific region over the next year - higher than a publicly funded study predicted last year, but below the board's own target of a further 10 per cent growth.

Mr Hickton said the board would continue to aim for 1.9 million visitors and $4.9 billion in earnings by June next year.

Although the Sydney Olympics is expected to deter visitors during September and October, the industry is hoping to benefit long-term from the publicity the Games will generate.

Mr Hickton said he was also optimistic that a shakeup in the airline industry would bring more traffic across the Tasman, with both Qantas and Air New Zealand likely to promote their domestic airlines more strongly.

Increased flights had already boosted numbers, but there was still room for more growth. "I think we could still do better in Australia in terms of getting people from that market to New Zealand," said Mr Hickton. "I think we are still closer than they realise."