Operators consolidate in hard times

Local tourism businesses are gaining from New Zealanders staying at home but travel agents are feeling the pressure of fewer Kiwis going overseas.

The number of Kiwis taking short-term overseas trips in May was down 6 per cent on last year.

Travel Agents Association chief executive Paul Yeo said a number of businesses had consolidated and some of the larger travel agencies had cut staff by up to 15 per cent.

"There haven't been any financial collapses, it's mainly been multi-branched operations consolidating."

Yeo said a true test of how badly Kiwi families were being affected by the economic downturn would be the July school holiday break which was normally the peak time for overseas travel.