New Zealand is experiencing a slowdown in the number of international tourists. And its economic slowdown is making it difficult to retain tourism operators in business.
The New Zealand Tourism Industry Association revealed that a fall in the number of tourists is expected from the major markets of the country. Also, due to economic slowdown in New Zealand, it is becoming essential to retain the tourism operators in business, as reported by Scoop. The tourism sector is the largest export sector of the country.
New Zealand witnessed an increase of just 1% in the number of international tourists from April 2007 to April 2008. New Zealand’s domestic tourism adds about $10.3 Billion in the country’s economy every year. Also, the tourism sector of New Zealand makes up for around 8.9% ($12.8 Billion) of GDP (Gross Domestic Product) and gleans $531 Million in Goods and Services Tax (GST) returns from international tourists every year.
The economic slowdown in the key markets, such as the US and Britain, are leading to a fall in the number of tourists visiting New Zealand and thus, leading to slow growth in the tourism sector of the country. The tourism industry of New Zealand is also concerned that the economic crisis in these countries will discourage their citizens from travelling abroad. Also, the rising fuel prices are pressurizing all the airlines worldwide to increase the prices of tickets and decrease the capacity and thus, the rising airfares are badly affecting confidence of tourists in the country.
Moreover, increasing competition from other international destinations is leading to downward growth in tourism sector of New Zealand as a large number of visitors prefer other destinations in place of New Zealand because airlines have made it difficult to reach New Zealand. Due to inaccessible and costly airlines, many tourists are not opting New Zealand as tourist destination. Also, lack of airline capacity and shift of Air New Zealand services from Singapore are preventing tourists from South Asian countries to visit New Zealand.
A Research Analyst, RNCOS said, “The tourism sector of New Zealand is facing a decline and is expected to remain slow in future also. Thus, to get back on the track, the tourism industry and airlines should provide rapid and comfortable services to visitors through an alliance with tour operators and airlines of other countries.”
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