KEY POINTS:
The tourism sector had its biggest windfall ever in the year to March 2007 with more than $20 billion spent by tourists.
Latest Statistics New Zealand figures show tourism expenditure increased by $896 million or 4.7 per cent from the previous March year.
Domestic tourism spend experienced particularly strong growth of 4.9 per cent, accounting for $11.8 billion, while the amount spent by international tourists grew 4.4 per cent to $8.8 billion, boosting tourism's percentage of total New Zealand exports to 18.3 per cent.
Overall tourism generated a direct contribution to gross domestic product of $7.9 billion, or 5.1 per cent and added $6.2 billion in indirect value to industries which support tourism.
Tourism Industry Association acting chief executive Oscar Nathan said it was pleasing to see the figure in black and white, but the result came at a time when the industry was already facing tougher times.
Nathan said he expected tourism expenditure to plateau over the next few years as the rising price of fuel hit the sector.
The industry has not faced a serious challenge for six or seven years and for many new businesses it will be the first time they have to go through a downturn.
Nathan said the industry association was working closely with its members to help them cope with the change in the environment and to recognise that survival was not about dropping prices.
Ministry of Tourism head of research Bruce Bassett said he also expected 2008 figures to be around the same as 2007 as growth from international tourists slowed.
However, he said the tourism industry was very resilient and over the longer term he expected growth from international visitors to overtake domestic tourist spend. "The tourist industry is very robust, it isn't subject to rapid movements."
Tourism Minister Damien O'Connor said the industry's ability to cope with more challenging times relied on New Zealand being able to generate greater value from each and every visitor and being competitive through offering sustainable tourism.
THE NUMBERS
Year to March 2007
* Total spend $20.1 billion
* 18.3 per cent of New Zealand exports
* 5.1 per cent of gross domestic product
* Employs 108,100 full-time equivalent
