Understanding variability in tourism spend

On: 19 October 2018

A report released today by the Ministry of Business, Innovation and Employment shows that while arrival numbers and international tourism spend between 2013 – mid 2018 increased, this period was particularly irregular over the short term.

“There is an expectation that growth in visitor numbers should result in comparative growth in visitor spend. While over the long term this is a reasonably consistent relationship, it is often not true in the short term,” says Dr Antony Kennedy, MBIE’s Manager Business and Economic Development.

Factors such as exchange rates, the composition of visitors and economic indicators including airfares and fuel prices affect visitor spend, and these often go beyond the tourism industry, Government and local economy.

The report also shows these factors impact the regions in differing ways, “For example, changes in very short-term visitor spending may affect Auckland but have less impact in the regions,” says Dr Kennedy.

Monitoring changes in economic factors (especially exchange rates) and understanding their effect on international tourism spend is important for industry and Government planning.

Read a summary of Understanding variability in tourism spend [PDF 600KB].

Read the full Understanding variability in tourism spend report [PDF 8MB].

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