Monday, December 15, 2008

Mixed results reported by tourism businesses

15 December 2008
Press Release: Tourism Industry Association

Bank of New Zealand – Business NZ Performance of Services Index (PSI) for November 2008 Tourism businesses surveyed as part of the Bank of New Zealand-Business NZ Performance of Services Index reported a mixed response with smaller tourism businesses generally reporting slightly more positive trading than the larger tourism firms.

Of the 22 tourism businesses surveyed, 14 reported that their main activity was positive while eight reported a negative trading environment.

Tourism Industry Association Chief Executive Tim Cossar says tourism businesses are heading into the busy summer holiday season and while trading is expected to be down on past years most businesses are more concerned about what bookings will look like after summer, from March next year onwards.

“The survey results suggest that the global economic situation and the recent slowdown in international visitor numbers are likely to impact larger firms more as they rely more on international visitors to keep their businesses ticking over. The smaller companies with a greater reliance on domestic trade seemed to be faring a little better.

“The industry tell us that while the markets are generally down, this is not the case for all tourism sectors. Some sectors within the industry are doing okay. Notably, backpackers, holiday parks and motels, many of whom are reliant on domestic and Australian markets.

“The fall in petrol prices and the summer holiday season is helping those operators who have a larger domestic base,” Mr Cossar says.

Despite a general slowdown, there have been some recent positive developments with the exchange rate moving in favour of international visitors, a slight recovery in the share markets and more political certainty following both the United States and New Zealand general elections, Mr Cossar says.

“A short term tactical marketing plan is required. We need to increase the focus on keeping both the Australian visitor market and our own domestic market strong.

Full results are available on under ‘PSI Reports’. For more information or assistance with data interpretation contact Stephen Summers: 04 4966564, .

The Bank of New Zealand - Business NZ PSI draws on the depth of member companies associated with Business NZ: Tourism Industry Association New Zealand (TIA), Employers and Manufacturers Association (Northern), Employers and Manufacturers Association (Central), Canterbury Employers’ Chamber of Commerce, Otago Southland Employers Association, Hospitality Association of New Zealand and the New Zealand Retailers Association. The survey is sponsored by Bank of New Zealand Ltd.

Fast facts
  • Tourism contributes close to 10% of gross domestic product (GDP) for New Zealand
  • Tourism directly and indirectly employs nearly one in ten New Zealanders.
  • Tourism in New Zealand is a $50 million per day industry. Tourism delivers $24 million in foreign exchange to the New Zealand economy each day of the year. Domestic tourism contributes another $26 million in economic activity every day.
  • Total tourism expenditure reached $20.1 billion for the year ended March 2007. International visitor expenditure accounted for $8.8 billion or 18.3% of New Zealand’s foreign exchange earnings.
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