Tourist operators expect decline

New Zealand tourism companies are less confident about sales and profits for a second month as more firms expect demand from local and international travellers will decline this year, a survey says.

An index of industry confidence fell to 80 this month from 98 last month, said a report published by the Ministry of Tourism and the Tourism Industry Association.

A measure less than 100 means pessimists outnumber optimists.

Visitor arrivals from Asia, Europe and North America have slumped in the past year as the global economic slowdown curbed travel, affecting earnings from tourism that make up about 10 per cent of New Zealand's economy.

Forty-one per cent of the 421 companies surveyed said demand may fall in the next three months, from 36 per cent last month.

Twenty-seven per cent expect an improvement, down from 34 per cent.

The outlook suggests industry earnings won't deteriorate materially, the report said. Average demand is likely to fall 0.6 per cent in the next three months and companies with annual sales of more than $2 million expect demand will rise, the survey showed.

- BLOOMBERG