Domestic tourism declines

Media Statement

Domestic tourism declines

Friday 24 October 2008 – For immediate release

Research just released by the Ministry of Tourism shows that spending by domestic travellers reduced by 6.4% to $7.4 billion in the year to June 2008.

“Weaker economic conditions and high fuel costs during the period are being reflected in a reduction in demand for travel, including domestic travel,” said Bruce Bassett, Ministry of Tourism Research Manager.

In the year to June 2008, the number of overnight trips declined by 5.5% while the number of day trips fell by 15.5%.

Mr Bassett said that the decline in both travel activity and spend were to be expected in the current economic climate. “There are a number of factors at play, but if the price of fuel stays down over the coming months we should start to see an increase in domestic activity, particularly in the number of day trips."

Mr Bassett added that while New Zealand was experiencing a decline in domestic tourism, the overall level of activity remained high with 40.2 million day and overnight trips made in the last year made by New Zealanders.

“Domestic tourism remains a very important part of the New Zealand economy. The degree to which New Zealand is exposed to the global financial crisis, as it relates to both international and domestic travel, will have a significant impact on the domestic tourism industry in the short term. We will be monitoring this closely as the situation changes."

The Domestic Travel Survey is a telephone survey of 15,000 New Zealand residents undertaken throughout the year. A range of data and reports from the survey are available on the Ministry of Tourism’s research website – www.tourismresearch.govt.nz/dts .

For further information, contact Martin Švehla – telephone (04) 474 2812 or email martin.svehla@tourism.govt.nz.

ENDS

Ministry of Tourism:
www.tourism.govt.nz
www.tourismresearch.govt.nz

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