Australian tourists who are vaccinated against Covid will be the first to be able to return to New Zealand without self-isolating under plans unveiled this morning.
They can return from 11.59pm on April 12 - in time for the Australian school holidays - but will need to test negative before travel and when they arrive, requirements that are being ditched in some markets.
Visitors from other countries like the US, Canada, Britain, Europe, Japan, Singapore, Taiwan, South Korea (visa waived countries) can return from 11.59pm on May 1. That excludes the big market of China (which has closed its borders as it pursues a Covid zero policy, and India). 'Vaccinated' is defined as having a ''complete course'' of vaccines overseen by Medsafe in New Zealand or the World Health Organisation.
The $500m a year cruise industry here is still out in the cold despite it opening up elsewhere. Work is still under way on the return of cruise ships but Prime Minister Jacinda Ardern gave no firm date for that.
The PM's announcement has largely been welcomed by sector groups including:
The Tourism Export Council has represented inbound operators for 50 years and says there's enormous relief but warns there is still a long way to go for traditional (long-haul) international tourism visitors to return to NZ.
Its chief executive Lynda Keene said Government help was still needed to get to the starting gate in October this year when the bulk of visitors will return for summer.
The start of the high spending long-haul visitor (USA, Canada, UK, Europe, SE Asia, China) season is six months away.
''Because of the lag time, businesses still need targeted financial support, they are hanging on by a thread. They've exhausted all balance sheet reserves and life savings, got second mortgages, borrowed from family and friends and sold assets to stay alive.''
With Australian visitors being short-haul travellers the council expects there will be a quick uptake for the Visiting Friends & Relatives (VFR) market and good for Australian ski/snowboard visitors and businesses that service the ski market.
The council believes bookings will flatten for a few months until October 2022.
Despite the encouraging news allowing businesses to plan with more certainty, there was still a long way to go for traditional (long-haul) international tourism visitors to return to New Zealand.
Keene said even the April 12, things don't change overnight.
''It takes time. International tourism will rebuild slowly. Early long-haul visitors that are likely to return first will be VFR, high net worth visitors and working holiday visa holders,'' said Keene.
It was heartening that the Prime Minister has acknowledged how important international tourism is to New Zealand's economy (and identity) and also how difficult the last two years has been for business owners, she said.
Mainstream holiday/leisure visitors won't start to come back until the fourth quarter.
''There's a lot of global competition and many visitors that have been waiting for New Zealand to be available may have already booked a ticket to another destination.''
TECNZ forecasts the total number of annual arrivals by the year ending May 2023 will be approximately 56.2 per cent of pre-Covid arrivals, 70.4 per cent a year later and 83.4 per cent by year-end May 2025.
''International tourism businesses have been the most impacted of all sectors across society. Having no access to your main customer base for two years, pivoting to domestic but having a handbrake with lockdowns in 2020, then Delta in 2021 and now Omicron in 2022, has crushed many iconic tourism businesses large and small,'' she said.
Most international businesses are not eligible for the recent Covid Support Payment (CSP) because they can't demonstrate 40 per cent loss in 2022 against 2021, when in 2021 they were only trading at zero or only 20 per cent.
''It will take time for cash-flow to grow. We hope the Government will revisit any decisions on targeted support shortly. It is needed to ensure the quality world-class visitor offering, infrastructure and service is still around for when visitors start to return.''
Tourism Industry Aotearoa communications manager Ann-Marie Johnson said although borders will be open to many travellers from the rest of the world over the coming weeks, it is anticipated that there will be a gradual rather than a rapid recovery during 202.
The most important aspect of today's announcement is that it provides certainty for travellers to plan ahead and make their bookings, and for tourism operators to prepare their businesses, hire staff and renew contact with their international markets.
Many parts of the tourism industry operate to long lead times. Airlines and the cruise sector in particular are finalising their schedules and selling itineraries for next summer, she said.
Air New Zealand chief executive Greg Foran says it's the day New Zealand has been waiting for.
"It's no secret the past two years have been extremely turbulent for people. There's a real buzz today. New Zealand holds a special place in many people's hearts, whether they're a Kiwi or visitor, touching down on New Zealand soil will be a moment to remember.''
Flights across the Tasman have been particularly popular, especially over the Easter period where the airline has added over 90 flights to keep up with demand over that period.
"Pre-Covid-19, Australia was the largest tourism market for both our airline and New Zealand. We know a lot of tourism operators have been missing international visitors so we're looking forward to playing our role in New Zealand's recovery.''
On its long-haul network there was particular interest in journeys from North America around the July holiday period.
''It's a sign that tourists still have New Zealand at the top of their bucket list."
The airline has more than 50 flights per week on its 15 international routes and will adjust capacity to meet demand in the coming months as New Zealand heads into the winter season.
With border restrictions starting to ease, the airline is also rebuilding its aircrew. In the six months since October 2021, Air New Zealand has rehired around 700 flight attendants and pilots with more opportunities on the horizon over the next six months when international passenger flying starts to increase.
Air New Zealand shares were trading up by more than 2 per cent to $1.41 this morning.
The Board of Airline Representatives says a steady climb is predicted for airlines' return now border opening. Right now more than half of them that flew before the pandemic are no longer serving New Zealand.
Justin Tighe-Umbers, executive director of Barnz, says airlines can now start to reschedule flights to this country with confidence.
"Now New Zealand is coming out of hibernation, we expect to see an increase in the number of international airlines and direct flight destinations," he said.
"But it will be a gradual rather than a steep climb back from the current 13 to anywhere near the 29 airlines that brought passengers here pre-Covid."
It would also take time to get back to the 43 direct flight connections to cities around the world before Covid.
The decision has come in the nick of time.
"We're one of the very last countries in the world to open to international visitors. It was vital for airlines to know so New Zealand wasn't overlooked in their planning for next summer. Competition around the world for the tourism dollar is strong."
Barnz warned that as a long-haul destination New Zealand needs to ensure it doesn't suddenly add in extra taxes and levies and tip the cost of travel to this country into the "just too expensive" basket.
Auckland Airport chief executive Carrie Hurihanganui said this was a huge moment for international travellers who for the first time in over 700 days will soon be able to grab their passport and jump on a plane to do business in New Zealand or have a holiday here rather than just dream about it.
"It's also an incredibly important moment for all of us at Auckland Airport following two years of virtually no international passengers. Allowing eligible travellers to cross freely into New Zealand marks a huge step in our recovery and that of the tourism industry, with everyone now able to look forward again with growing confidence."
Overall, international traveller numbers at Auckland Airport have fallen over 90 per cent to 2900 per day from 30,000 per day before the outbreak of Covid-19.
"While the reopening of New Zealand's border won't be a big bang and we think it will take time for passenger flows to recover, we are very optimistic about the future,'' she said.
"Today's announcement provides the certainty international airlines have been telling us they are looking for, allowing them to plan their flight schedules in advance, start selling tickets and ramp up operations."
The airport would ramp up operations as demand returns.
Australia was New Zealand's largest source of travellers prior to the pandemic, with 4.6 million passengers each year or 12,500 per day pre-pandemic. Currently, there are 1700 daily passengers across the Tasman and two airlines flying (Air New Zealand and Qantas) with LATAM flights available from the end of March.
The airport's shares were up 0.7 per cent at $7.33 this morning following the announcement.
Hotel Council Aotearoa strategic director James Doolan said he was pleased that the Government has brought forward the reopening dates for the return of international tourists.
''It's a shame that visa processing capacity seems to be delaying a full reopening, but we'll take what we can get.''
Before borders closed two years ago, 55 per cent of all overnight accommodation revenue was from international travellers. Domestic demand alone was never enough to replace free-spending international tourists.
New Zealanders notice the impact of missing international travellers when their favourite restaurant goes out of business, or when they see boarded up shops in tourist destinations such as the Auckland CBD, Rotorua, West Coast and Queenstown, he said.
Many ''excellent'' tourism businesses have not survived two years without their most valuable customers.
''This announcement could have been made six weeks ago when government modellers started predicting tens of thousands of daily cases.''
Government must now be mindful of not retaining pre-departure testing requirements any longer than strictly necessary, since the cost and inconvenience will be a barrier for many leisure travellers. Britain removed all travel restrictions overnight and New Zealand's competitor destinations are on a similar path.
Operationally, a number of challenges lie ahead.
''We must move to Omicron level Orange as soon as possible, because level Red is suppressing demand. If vaccine passes aren't removed entirely, then it should be much easier for tourists to obtain them quickly on arrival.''
The Government's visa processing capacity and turnaround times need attention.
Finally, it's beyond time for a reopening of the maritime border. Cruise ships could have safely returned to New Zealand months ago.
''The hotel sector faces a near-impossible task of rebuilding teams after 54 per cent of overnight accommodation sector workers were lost in the first twelve months after borders closed,'' said Doolan.
The council has been warning the Government about the impending tourism labour squeeze since December 2020, but little was being done.
''This will slow the recovery and negatively affect service standards."
Australia yesterday announced it would reopen to cruise ships from next month and here the NZ Cruise Association had been hoping for clarity around when that would happen in this country.
The prime minister said today work was under way may accelerate a reopening but gave no firm dates.
Association chairwoman Debbie Summers said there should be a date established and the sooner the better.
''We have squandered opportunities already regarding the New Zealand tourism 2022/23 season. If we look at the northern hemisphere pattern in particular, then the majority of destinations are or have already moved to zero restrictions for international visitors,'' she said.
''We urgently need to reassure our markets that we are going to open and with as few impediments as possible, competition is fierce out there and we are last cab off the rank.''
Rates for hotels have soared in one tourist hotspot while others have suffered.