Tourist spending falls to 5-year low

More tourists are coming to our shores, but they're not spending as much, says new research. Photo / Paul Estcourt

Spending by tourists dropped to a five-year low in 2010, even as more people visited New Zealand, as the strong kiwi dollar sapped people's purchasing power as the global recession eroded their incomes.

Total spending fell 10 per cent to $5.57 billion last year, according the Ministry of Economic Development's International Visitor Survey, with Chinese and Korean visitors the only groups to boost spending in the year.

That's the lowest spend since 2005, and came when the New Zealand dollar gained 7.6 per cent in 2010, and persistently held above 70 US cents for most of the year. The kiwi recently traded at 76.26 cents.

"The lower spend in 2010 appears to be the result of the high New Zealand dollar and tourists having less in their pocket because of the global recession," Roger Wigglesworth, director tourism, events and consumer affairs at MED, said in a statement. "Despite the financial situation, New Zealand saw a record number of tourists visiting its shores."

Asian visitors drove the gains in total numbers visiting the nation, with traditional American and British markets extending their decline. The total number of people visiting New Zealand rose 2.7 per cent to 2.5 million.

New Zealand benefited from a turnaround in the number of Asia travellers after swine flu sapped their appetite for international holidays in 2009. The sector took a hit after the global financial crisis, and has slowly bounced back as people recover their appetite for international travel. New Zealand tourism is expected to get a fillip with the Rugby World Cup later this year.

More Australians crossed the Tasman last year, though they spent less as their currency outpaced gains in the kiwi. The government teamed up with Air New Zealand to try and woo Australians across the ditch in a joint marketing campaign, and are seeking to do the same in China.