Tourism wins against odds

By SIMON HENDERY

Spending by overseas visitors reached a record high last year - a further sign that the tourism industry is shrugging off the effects of last year's airline woes and terror attacks.

Short-term visitors spent $5.2 billion (or $100 million a week) during their stays in New Zealand over the year, 9.8 per cent more than in 2000.

Although the September 11 attacks and the collapse of Qantas NZ and Ansett Australia shattered the industry's forecast for double-digit visitor growth last year, Tourism New Zealand chief executive George Hickton said an encouraging aspect of yesterday's figures was that average spending per visitor was up 2.7 per cent - from $3006 to $3088.

Visitor arrivals for the year also reached a new high - 1.91 million, up from 1.79 million during 2000.

"Visitor numbers for the fourth quarter were down 4.4 per cent compared with 2000, although an increase in average spending per visit kept total earnings for the quarter at their 2000 level," Hickton said.

"This shows the importance of not focusing simply on arrival numbers."

Tourism Minister Mark Burton repeated the message, saying the fact that visitor spending rose more than arrival numbers - which were up 6.9 per cent - showed yield was increasing.

Spending patterns by the two highest-spending visitor nations - the US and Japan - were mixed.

The average amount spent by Japanese tourists dropped $509 to $4414, but American visitors spent $256 more, to $4363.

Those two lucrative markets were also the two significant markets most severely affected by post-terror attack travel fear.

Arrivals from Japan dropped 2300 last year to 149,100 and US arrivals were down 8400 to 187,400.

Spending by Australians was unchanged at $1744 a visit but the number of visitors rose 18 per cent.

At $946 million, Australia was our biggest single country market.

Sean Murray, chairman of the Tourism Research Council and general manager commercial of Tourism Holdings, said the jump in spending was due to visitors staying on average a day longer in the country.

The falling dollar had also encouraged tourists to spend more.

"Instead of spending $15 on a bottle of wine at a restaurant, people are buying a $25 bottle of wine.

"What the figures demonstrate is that the visitor industry belongs to New Zealand as a whole, not just the tourism industry, in terms of where the spend is taking place."

Murray said tourism growth had averaged 7 to 8 per cent over the past 15 years "and there is no reason that shouldn't continue assuming we can cope with the demand".

Monthly visitor arrival figures for January, the latest available, show a 3.5 per cent increase on the same month last year - the first time monthly figures have risen since September 11.

The country's largest hotel group, CDL Hotels, this week reported a six-fold increase in half-year profit and said occupancy rates had been strong this summer - partly because the company boosted business from local holidaymakers when overseas guest numbers fell.

The country's largest tourist operator, Tourism Holdings, was not so lucky. Last month it reported a 61 per cent dip in half-year profit and warned its full-year result could slip into the red.