Tourist spending tipped to outstrip rise in numbers

By SIMON HENDERY

Tourism operators who have spent the past year worrying about the threats of Sars and global terrorism were offered encouraging forecasts and some political pep talk yesterday at the start of their annual showcase industry conference.

Tourism Minister Mark Burton used the start of the Tourism Industry Association's Tourism Conference in Queenstown to release forecast figures to 2009 showing that average spending by overseas tourists is expected to rise at almost twice the rate that visitor arrival numbers are growing.

The forecasts from the Tourism Research Council predict a 5.7 per cent growth in international arrivals annually between now and 2009, with international visitor expenditure increasing at 9.7 per cent each year.

Those figures translate into an increase in arrivals of 47.5 per cent by 2009, and a growth in expenditure of 91.2 per cent.

"These forecasts reinforce that the industry is headed in the right direction, with value well ahead of volume," Burton told about 500 delegates at the conference.

"Perhaps even more important is the fact that these forecasts set out what is likely to happen if we maintain the market's current situation.

"They do not reflect what might happen if we can make the relationship between numbers and yield work even more in our favour. That, then, is my challenge to the sector - outperforming the forecast."

Prime Minister Helen Clark, opening the conference, told delegates that their industry had contributed "massively" to employment, export earnings, regional development and the economy overall.

She said that despite global terror attacks and the Sars virus, the industry had continued to grow; arrival numbers for the year to July were up 4.1 per cent.

"We've been able to leverage off interest in publicity surrounding The Lord of the Rings and the America's Cup. Leverage of mega-events like those does not just happen - it comes off smart strategies which are designed to maximise advantage to New Zealand.

"And it is a challenge to link a fantasy movie based on a book written by an Oxford don to New Zealand."

Writing in Tourism New Zealand's industry newsletter, chief executive George Hickton said the outlook for visitor arrivals for the rest of the year was mixed.

Good growth was expected from the two largest markets - Australia and Britain - but fewer arrivals were expected from Japan - the third largest market - and other Asian countries.

"While booking trends are showing some positives for the future, it will be some time before these markets return to the [pre-Sars] levels of 2002," Hickton said.

"Another positive is the continuing increase in air capacity to New Zealand. This year our summer capacity will be at its highest level ever. This gives us a fantastic opportunity for future growth."

Norm Thompson, Air New Zealand's senior vice-president, sales and distribution, told the conference that inbound tourism would play a crucial part in ensuring the airline's future success.

Speaking before the Australian Competition and Consumer Commission issued its final decision denying approval to a proposal alliance between Air NZ and Qantas, he said the alliance would provide significant benefits to New Zealand tourism.

The benefits would include instant network expansion for both carriers, a seamless travel experience across a wider range of ports, and a better spread of risk in what had been a very volatile market.

Burton said a focus on quality was at the heart of a sustainable future for tourism.

"The long-term future of our industry depends on every visitor receiving a world-class experience - in their accommodation, their food, the activities they choose, and the environments they visit."