This Content Is Only For Subscribers
The latest Tourism Economic Card Transaction (TECT) data for March 2024 has been released presenting a subtle shade of New Zealand’s tourism sector, highlighting both impressive gains and concerning declines.
Here’s what it means:
The year-ending March 2024 saw overall positive trends, but regional inconsistancies paint a complex portrait of recovery and growth.
Domestic and International Spending Surge
Domestic tourism spending rose by 3.8% in the year ending March 2024 compared to the previous year. This growth, while modest, underscores a steady recovery in local tourism. Howver, international spending surged by an impressive 43%, a clear indicator of New Zealand’s continued appeal to overseas visitors.
Hawke’s Bay Recovery
Hawke’s Bay emerged as a standout region, recording the fastest growth in domestic TECT spend with a 41% increase. International spending in the region also increased by 124%, making it the second fastest-growing area for international tourism. This recovery is significant given the impact of Cyclone Gabrielle in 2023, which had caused a 15% drop in domestic spending. Hawke’s Bay’s strong rebound reflects both effective recovery efforts and the region’s appeal.
Queenstown’s Mixed Results
Queenstown, a major hub for international tourism, experienced slower annual growth in international spending at 17%, despite being the second largest region for international tourism expenditure. This slower growth is juxtaposed with a significant 8.4% decline in domestic spending, the second highest decrease after Manawatu. The Central Economic Development Agency (Manawatu’s RTO) recorded the largest fall in domestic spending, down by 9.1%.
Sector-Specific Trends
Retail sales in alcohol, food, and beverages showed the strongest growth among product categories, with a 95.8% increase in international sales and a 13.4% rise in domestic sales compared to March 2023. However, the “Other Passenger Transport” category, which includes vehicle rental services, faced significant declines, with international spending down by 11.9% and domestic spending plummeting by 34.2%.
Looking Forward
The mixed outcomes in the March 2024 TECT data reflect the complex dynamics of New Zealand’s tourism sector. While international tourism shows robust growth, certain regions and sectors face ongoing challenges. The impressive recovery of regions like Hawke’s Bay offers a blueprint for resilience, demonstrating the potential for regions to bounce back from significant setbacks.
