Ski season hopes boost tourism firms

New Zealand tourism companies are less pessimistic about demand amid expectations a good alpine skiing season may bolster arrivals from Australia, according to a survey.

About 54 per cent of companies say demand will fall in the next three months down from 64 per cent in the June survey, according to a report published by the Ministry of Tourism and the Tourism Industry Association.

Twenty-three per cent of the 578 respondents expect an increase in demand.

Low temperatures and snow falls have fanned expectations of a prolonged skiing season, which may boost arrivals from Australia at a time when recession and swine flu deter visitors from Asia and Europe.

Air New Zealand and Qantas Airways have added flights to Queenstown, making tourism companies in that region the least pessimistic.

On average, companies expect a 4.5 per cent drop in demand over the next three months, the survey showed. In the lower South Island, demand is expected to fall no more than 3 per cent.

More than 60 per cent of respondents expect a rise in demand from Australian visitors.

Earnings from tourism make up about 10 per cent of New Zealand's $180 billion economy.

Visitor arrivals in May rose 1 per cent from a year earlier, according to a Government report last month. The figures included a surge in tourists from Australia, which the Government has targeted with extra marketing.

- BLOOMBERG