KEY POINTS:
Spending by American tourists has plummeted by 16 per cent in the past year.
Ministry of Tourism figures reveal a flat year for international visitor spending. Growth was just 0.1 per cent for the 12 months to September 30, with spending increasing by $7 million to $6028 million.
Research manager Bruce Bassett said the decline in growth was linked to weakness from both the US and Asian visitor markets.
Spending from American visitors was down $111 million on last year while China fell by $28 million. Taiwan was down $16 million and Korea fell by $4 million.
Bassett said there was potential for spending to drop below last year's figures as the full impact of the global financial crisis had yet to hit the New Zealand tourism industry.
Bassett said visitor arrivals had started to track into negative territory and by association that could spell a drop in spending.
"There is obviously a clear relationship between visitor arrivals and spend. But we are not at that point yet."
Bassett said there was still a marginal increase which was a good indicator for the industry that spending was holding up well.
But he admitted the global financial situation was grim.
"That casts a big pall over how it is going to impact New Zealand. I know we haven't felt the full effects yet."
But Bassett said there were also some positives in favour of the industry.
"The exchange rate has moved and has increased the spending power of visitors."
The price of oil had also come down - a factor which was major concern for the tourism industry earlier this year.
While the indicators weren't stacked in favour of the industry, Bassett said tourism was extremely resilient and history showed it recovered well.
"What we don't know at this stage is the depth or duration of the current downturn, and consequently when this recovery will occur," he said.
On a visitor purpose basis, spending by business travellers fell the most during the year, dropping by $46 million to $784 million. Those on holiday also spent $6 million less. Visitors in New Zealand for educational reasons increased spending by $38 million or 10.2 per cent.
