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While some tourism operators suffer, business is booming for holiday parks and backpacker hostels.
The Tourism Industry Association's latest monthly survey of businesses shows 60 per cent have had positive rather than negative trading over the Christmas period.
Spokeswoman Sarah Berry said while international visitor numbers are down 5-10 per cent, domestic tourism has held up strongly over summer.
She said the increase in business for the likes of holiday parks may be due to people looking for a cheaper holiday in tough economic times.
Berry said when Australia is taken out of the equation, the figures show a 10-15 per cent drop in long-haul international visitors.
She said operators who market heavily to Britain, America and Asia will be finding it the toughest.
- NEWSTALK ZB