Aussie tourist allure lags

While New Zealand continues to be a hot tourist destination, Australia is definitely not, according to Tourism Holdings (THL).

At the tourism business' annual meeting in Queenstown this week, chairman Keith Smith warned that visitor arrivals to Australia - which accounts for 36 per cent of THL's business - fell 3 per cent in August.

And rugby's biggest trophy was not likely to help, the company said.

Although the World Cup was likely to boost visitor numbers, the rugby fans did not necessarily use THL's motorhome rental and backpacker transport businesses. "What has become evident is that our normal client base, up to, and during the World Cup have stayed away, as they did in 2000 for the Olympics, due to higher travel and accommodation costs and perceived shortage of hotel accommodation."

Smith said he expected a knock-on effect for New Zealand.

But worries about Australian visitors aside, Smith was upbeat about the coming year.

He said the company was committed to paying a dividend next year of at least 8c a share - the same as this year.

- NZPA