Spending by overseas tourists is forecast to grow by 18 per cent to $6.5 billion in 2019, says a government report.
Figures released by the Ministry of Business, Innovation and Employment show the global outlook remains mixed with disappointing data in Europe and some other countries, and more positive indicators in the United States and Japan.
"Australia and Canada are also grappling with overheated housing markets and over-indebted households," the report said. "To reduce their debt positions these households will reduce consumption including cutting international travel."
Despite this mixed picture, international visitor arrivals are forecast to keep growing over the next six years.
The global economic situation suggested that traditional markets such as Britain would continue to decline. However, this decline would be offset by strong growth from China and Australia. The United States economy appeared to be improving and visitor arrivals from the US were expected to improve.