New Zealand’s tourism sector again proves its undeniable value, emerging as a pillar of economic strength and employment. Newly released figures from the Tourism Satellite Account (TSA) reveal that the visitor economy directly or indirectly employs 303,420 New Zealanders. In the year leading up to March 2024, tourism generated an astounding $44.4 billion in visitor spending, reinforcing its critical role in the nation’s financial ecosystem.
International Visitors Lead Spending Surge
A standout finding from the report is the decisive contribution of international visitors, who injected $16.9 billion into the economy—an impressive 59.9% increase from the previous year. In contrast, domestic travel saw a slight downturn, with Kiwi travellers spending $27.5 billion, a 2.5% decline.
Tourism Industry Aotearoa (TIA) Chief Executive Rebecca Ingram highlighted the sector’s resilience, emphasizing its ability to adapt and flourish despite economic shifts.
“The big news amongst the big numbers is that while Kiwis were spending less, international visitors were providing an important stimulus to our economy. It also shows that tourism businesses were hiring and creating positive employment opportunities,” said Ingram.
Tourism: A Cornerstone of the National Workforce
Tourism remains one of New Zealand’s largest employment sectors, supporting 10.7% of the country’s total workforce. The industry’s contribution to Gross Domestic Product (GDP) climbed to 7.5%, up from 6.9% in the previous period.
Additionally, tourism-related businesses expanded significantly by 15.1%—a clear signal of renewed confidence, innovation, and investment in the sector.
Positioning for the Future: The Road to $55 Billion
With total spending already reaching $44.4 billion, the industry’s trajectory toward $55 billion by 2030 appears well within reach. This resurgence also strengthens tourism’s bid to reclaim its status as New Zealand’s #1 export earner, currently held by the dairy industry.
Government initiatives announced this month have reinforced this momentum with new policies to bolster tourism growth and sustainability efforts.
“It is an exciting time for the sector, and we look forward to continuing to work alongside the Minister for Tourism and Hospitality as she progresses her Tourism Boost plans,” Ingram added.
Major Investments Fuel Expansion
Significant investments in infrastructure are paving the way for future growth. Newly developed world-class conference centres in Auckland, Christchurch, and Wellington and continued hotel expansions are enhancing the country’s capacity to welcome more visitors, particularly as New Zealand moves into the autumn and winter seasons.
“Our members are ready to provide memorable experiences across the country. These new facilities provide real potential for growth, offering premium accommodation and state-of-the-art venues for business and leisure travelers alike,” said Ingram.
A Temporary Shift in Domestic Travel Trends
The dip in domestic spending coincides with the first full European summer since New Zealand’s borders reopened. Many Kiwis seized the opportunity to travel abroad, particularly to reunite with family and friends. Those who vacationed locally opted for shorter stays and budget-conscious trips, a trend echoed by tourism operators nationwide.
“Those that remained went on holiday but planned shorter stays and managed their money closely. These figures reinforce what we heard from our members at the time,” Ingram noted.
The Call for Faster Data Releases
The latest TSA data provides the most comprehensive insights into the industry’s performance, but sector leaders call for quicker reporting to maximize its value.
“The data is hugely valuable, and we would love to see this released within six months of the reporting period so its insights can be of maximum benefit for the industry and government as it looks to boost the industry,” Ingram urged.
New Zealand’s Tourism Industry: A Bright Future Ahead
With strong job growth, increasing visitor numbers, and substantial government support, New Zealand’s tourism industry is thriving and set to reach new heights in the coming years. The positive trajectory toward $55 billion in tourism revenue by 2030 underscores the industry’s resilience and continued contribution to the nation’s economic prosperity.
As New Zealand positions itself as a top global travel destination, the sector’s dedication to sustainable tourism, cultural hospitality (manaakitanga), and world-class experiences ensures that both visitors and locals reap the benefits of its ongoing success.
Written by: Michelle Warner
