Tourism operators are bracing themselves for "a summer like we have never seen before" as the global downturn bites.
Tourism New Zealand (TNZ) said tourism industry was likely to become a casualty of the recession although how big the fallout would be was still not clear.
Geoff Gabites,from tourism company Adventure South, said tourism was expected to be down 10 per cent this season although it was "not yet a meltdown".
"There are still a surprising number of inquiries from groups but there are a higher percentage of tyre-kickers, which could affect the end of the summer season," he said in the latest issue of TNZ's magazine, Tourism News.
Dave Hawkey from South Island company Real Tours said they were in for a challenging period and the drop in visitors would result in a summer like the industry had never seen before.
"We are predicting it will be tough for at least a couple of years," he told the magazine.
TNZ chief executive George Hickton said while many tourism markets were down, the country had to look to where it could generate volume and growth.
"Australia will be part of that."
New Zealand had to be nimble to generate interest from other emerging markets.
"But that has to be balanced by maintaining mature and high-yielding markets like the UK," he said.
