International visitor spending dips

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Spending by international visitors has dipped for a second year, but a boom in the Australian market has helped cushion the fall.

Ministry of Tourism figures show international visitor spend fell 0.7 per cent to $6 billion in the year to June, as the fallout from the global economic crisis continued.

Ministry of Tourism research manager Bruce Bassett said while the overall result was not good, it was consistent with market trends.

Spending levels had held up well in the face of challenging economic conditions, and New Zealand's diversified portfolio of markets had helped, he said.

"When some markets are weak, other markets tend to be strong," he said.

Visitor spend from the Australian market rose 5.8 per cent to $1.7 billion in the year to June, as spending from our second biggest market, the United Kingdom, continued to slide.

Total spending by visitors from the UK was down 14.1 per cent to $710 million in the year to June, and down $304 million from two years ago.

Other long-haul markets also suffered falls, although those markets, by expenditure, are significantly smaller.

Spending by visitors from the US was down 15.3 per cent, Japan fell 15.4 per cent and Germany was down 3.4 per cent.

The Chinese (up 17.2 per cent to $365 million) and South Korean markets (up 1.6 per cent to $201 million) were the only other markets to post gains.

Basset said he expects modest arrivals' growth during the next year, which would be buoyed by a two or three per cent increase in visitor arrivals due to the Rugby World Cup.

- NZ HERALD