Spending dips as fewer tourists visit

An English tourist records a video message for family and friends as part of a tourism promotion. Photo / Martin Sykes

The amount of money spent by international visitors has fallen for the first time in three years, hit by fewer visitors from New Zealand's key long-haul markets.

Ministry of Tourism figures show spending fell 0.1 per cent in the year to March, a drop of $5 million to $6.123 billion.

Tourism research manager Bruce Bassett said despite the fall he viewed the result as positive given the challenging times facing the industry.

"Total spend held steady in a year when the number of international travellers to New Zealand actually fell by 3.9 per cent."

Spending from New Zealand's top three source markets fell.

Bassett said the drop from Australia was because the mix of visitors had changed.

Even though more Australians are coming to New Zealand, spending has fallen because more of those who come here are visiting friends and family rather than being here for a holiday or business.

The total spend from the United Kingdom and America also fell after the number of visitors dropped.

In March, British visitors were down 26 per cent, while those coming from the US fell 20 per cent.

Bassett said those coming here were spending more, probably because of the more favourable exchange rate.

"The New Zealand dollar has moved quite dramatically.

"Even though other economies are feeling the stress at home, New Zealand is a cheaper destination than it has been in some time."

Visitors were also able to get more for their money because the industry was discounting prices.

Some markets such as Japan, where visitor numbers had fallen for some time, had an increase in spending because of currency fluctuations.

But Bassett was reluctant to forecast what spending would be like in the next year until the ministry had completed its annual report, due out at the end of June.

A report commissioned by the ministry found visitor numbers were still to feel the full impact of the economic crisis.

Bassett said the global recession was a key factor as it had driven a lot of wealth out of the world and much of that was discretionary spending.