Chinese students prop up tourism spending

Monday 10th August 2009

Chinese students propped up the amount spent by tourists in the past 12 months as the global recession kept UK travellers’ wallets tightly closed.

International visitors to New Zealand spent $6 billion in the year to June 30, down 2.6% from the same period last year, according to Ministry of Tourism data.

The fall almost matches the 2.8% decline in tourist numbers in the past 12 months. British tourists led the contraction, with spending down 19% to $826 million, while Chinese visitors boosted their expenditure 28% to $334 million.

“Even after a year of very unfavourable conditions, the tourism industry remains a major contributor to the New Zealand economy,” said research manager Bruce Bassett in a statement.

Tourist spending is expected to being showing signs of recovery next year, with a “strong rebound” in 2011, he said.

Tourism has suffered as rising oil prices and increasing unemployment sapped demand for international holiday destinations, and the outbreak of an influenza pandemic caused panic throughout Asian nations.

Air New Zealand, the national carrier, has reported 10 consecutive declines in long-haul passenger numbers.

Chinese spending was a direct result from a recent boost in the number of international students. As a whole, student spending jumped 43% to $627 million.

Spending by Australian visitors slipped 3.3% to $1.6 billion, even as the number of tourists from across the Tasman increased. Australia is being targeted by a joint $5 million marketing campaign by the government and Air NZ, which Prime Minister John Key estimates may generate $65 million worth of economic benefits.

Businesswire.co.nz

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