KEY POINTS:
The tourism industry is preparing for a tougher year ahead as latest visitor numbers confirm the sector is slowing.
While short-term international arrivals were up 2 per cent overall last year to 2.466 million, December figures, out yesterday, were 1 per cent down on December 2006 - the third month in a row in which year-on-year visitor numbers have dropped.
The drop follows from October and November, which had falls of 3.6 and 0.5 per cent respectively.
The biggest drop off in tourists last year was from the UK, with 4400 fewer people coming to New Zealand than in 2006.
Visitors from Asia also dropped with Korean tourist numbers down 3600, Japanese down 1700 and Taiwanese falling by 900 visitors on the previous year.
But visitors numbers were up from Australia (4600) China (900) Germany and India (both 700) and South Africa (500).
Tourism New Zealand chief executive George Hickton said the downward trend for the last quarter of the year was not surprising given what had been happening in world economics, but it signalled a tougher year ahead.
"It's not the time to panic - we are not going to fall in a hole. But I don't see a lot of things that will encourage growth."
He cited the high dollar, economic fears and higher airfares as reasons behind the slowdown and said the country would be doing well if it managed to maintain the same numbers this year.
New Zealand Inbound Tour Operators Council chief executive Paul Yeo said it was commonly agreed that this year was going to be more difficult.
"The high dollar has been with us for a long time and it doesn't look like there will be any major drop on the horizon. There are also a lot other destinations on the menu.
"It's a just a consolidation period - we have had some good growth."
But Yeo said the general feeling was still optimism and those in specific markets such as Australia were still doing well.
Tourism Industry Association spokeswoman Sarah Berry said the latest figures were a reminder for the industry to work together for growth and of the need for continued funding for Tourism New Zealand to market New Zealand successfully in competitive markets overseas.
