NZ State of Tourism
As tourism begins showing signs of slowing, strategic planning on an uptick. We like to keep our finger on the pulse of what’s happening in the tourism industry – partly as we’re based in Queenstown (the tourism capital of New Zealand), but mainly because we have several clients in the tourism space and knowing their business is our business.
As tourism begins showing signs of slowing, strategic planning on an uptick
We like to keep our finger on the pulse of what’s happening in the tourism industry – partly as we’re based in Queenstown (the tourism capital of New Zealand), but mainly because we have several clients in the tourism space and knowing their business is our business.
Over the past decade, we’ve been very lucky here in New Zealand. Tourism numbers have been on the rise, often with double-digit growth (2014 to 2018 experienced the highest portion of this growth). Since 2010, the value of the tourism sector has grown from $25.6 billion to $40.9 billion per annum – a nearly 53% increase. In addition to the increase in the number of international arrivals (up 38.8% since 2014), visitor spending has also increased (54.9% since 2014).
From a local New Zealand perspective, this means that tourism now directly or indirectly employs one in seven Kiwis. It represents 20.4% of New Zealand’s total export of goods and services and nearly 6% of GDP. Kiwis themselves have also become accustomed to travel and tourism, taking advantage of the numerous and amazing activities available here in their backyard. In fact, 59% of visitor spend comes from domestic tourism.
However, with the close of 2019 just around the corner, we are beginning to see a slowdown in the rate of growth in this industry. This shift means the constant stream of visitors so long enjoyed and relied on are starting to become fewer. The key to continued success for those operating in this industry will require an even more strategic and long-term planning approach. Ensuring marketing and advertising efforts are reaching the right type of visitor through the mediums they’re most likely to encounter, while also developing a clearer understanding of the feelings behind customers’ decisions to visit New Zealand and partake in various activities.
Knowing the industries where our clients operate allows us to understand our clients’ operations more deeply. We find our collaborations drive even more impact when everyone around the table has a full understanding of the baseline for the business – ensuring we can be as strategic as possible with our partnership and recommendations. If you’re looking into 2020 and seeing areas where you’d like to realise an even deeper impact with your business, please get in touch – we’re ready.
Sources: StatsNZ, MBIE