It is expected that New Zealand will witness low tourist arrivals in coming years in the backdrop of rising traveling cost, global economic slowdown and reduction in flights.
Against earlier prediction, the Tourism Ministry of New Zealand forecasts that the country will see a decline in tourist arrivals in the next three years ending December 2010, as reported by Bloomberg.
The total number of visitors is estimated to reach 7.7 Million in the next three years, down 4.7% from previous prediction made in 2007. The total arrivals in the country last year stood at 2,455,000 while it is expected to grow at 26% to cross three million arrivals annually by 2014. However, the annual tourist inflow from Japan in New Zealand is anticipated to reach 100,000 by 2010 from 122,000 recorded in 2007. Also, the tourist arrivals fell in the second quarter of 2008 by 3.6% over the same period a year ago.
Low tourist arrival in New Zealand in the next three years is primarily due to rising traveling cost in the wake of high fuel prices. Soaring fuel prices have made traveling costly which is restraining foreign tourists from coming to New Zealand. Consequently, the number of tourists is dropping and is likely to slump further in coming years.
Another key factor that will potentially affect the tourist inflow in the country is slowdown in the global economy that will force people to cut down their international visits. Besides, rising airfares, low frequency of flights, and low availability of seats are posing big challenges before the tourism industry.
However, the sluggish growth in tourist arrivals will not last for long and the industry will come out from this situation very soon. Moreover, the industry is planning to promote itself in various countries by increasing spending on promotional activities that will boost the tourist inflow in the country.
According to a Research Analyst at RNCOS, “The tourism industry of New Zealand is expected to see low tourist inflow in coming years as it is facing tough time due to unfavorable business conditions. It plays a key role in the country’s GDP by brining in a big amount of foreign exchange in the country. If the growth remains sluggish, the country’s economy will be affected negatively along with related industries such hotel and travel agencies.”
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