Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Tourists Keep Some Business Sectors on a High

It’s Back to Business as Usual for Most– but Tourists Keep Some Sectors on a High

Auckland, 11 March 2014 - Electronic transaction figures released today by Paymark show merchants continue to experience spending momentum into the new year but with less rush than experienced mid to late 2013, excepting amongst those sectors linked closely to tourist dollars where spending continues to accelerate.

Off the back of record-breaking growth in December and strong trading in January, total spending through the Paymark network during February was up 7.4 per cent year on year.

However, excluding spending at petrol stations and supermarkets during February that figure drops to 6.2 per cent year on year, slightly lower than the average of the last six months.

Paymark’s Head of Customer Relations, Mark Spicer, says that the levelling out of spending growth can be attributed to many factors but most importantly he believes the data show we are reaching a more mature stage of the business cycle.

“First, there is the seasonal element whereby it’s back to business for the majority of Kiwis with work and school very much back in session and that shows across most spending.

“Of a more cyclical nature, spending growth related to housing sector is now moderating with growth at hardware (+5.1 per cent year on year) and appliance (+4.9 per cent year on year) stores dropping below recent averages.

“In contrast it looks like those sectors closely linked to entertainment and hospitality continue to trade strongly. This is perhaps a nod to the higher than previous level of tourists travelling in the country at present,” adds Spicer.

Accommodation providers around the country experienced year on year growth of 14 per cent during February, cafes and restaurants were similarly buoyant (12.5 per cent) as were bars and clubs (+ 10.1 per cent) and takeaways (+10.5 per cent.

Low growth remains at chemists (+1.3 per cent) while the other low-growth sector of late – clothing shops (+4.4 per cent) – has picked up slightly.

Looking around the country, Marlborough continues to lead the charge with annual spending growth of 12.1 per cent, Palmerston North follows close behind with year on year growth of 9.2 per cent.

Canterbury and Otago were also strong during February with year on year growth of 7.9 per cent and 7.8 per cent respectively.

Conversely retailers in Wellington and Wanganui saw low growth again with the value of sales in these regions growing only 2.6 per cent and 2.9 per cent year on year respectively.

In terms of the volume of transactions Kiwis made during February, we swiped our cards 5.79 million times more this February than we did last February (+7.8 per cent growth).

Credit card usage remains strong, up 17.6 per cent, year on year while debit card spending remains consistent at 4.8 per cent.

PAYMARK Regional Data (February 2014 versus same month 2013)

RegionVolume (million transactions)Last YearVolume (million transactions) Current YearVolume DifferenceValue of spending ($millions) Last YearValue of spending ($millions) Current YearValue Difference
Auckland/Northland29.0631.197.3%$1,498.7$1,602.26.9%
Waikato5.595.936.1%$275.0$288.95.0%
BOP4.695.078.1%$238.9$256.07.2%
Gisborne0.690.758.3%$32.6$34.76.2%
Taranaki1.761.918.7%$84.2$89.66.4%
Hawke’s Bay2.122.287.3%$103.6$109.55.7%
Wanganui0.840.863.1%$36.9$37.92.9%
Palmerston North2.322.497.2%$124.6$136.09.2%
Wairarapa0.710.766.7%$33.9$35.85.5%
Wellington8.188.605.1%$371.8$381.52.6%
Nelson1.471.587.4%$75.8$80.76.4%
Marlborough0.820.9111.1%$44.2$49.512.1%
West Coast0.540.564.5%$31.8$32.83.2%
Canterbury8.339.018.1%$433.6$467.67.9%
South Canterbury1.181.223.4%$65.5$66.41.4%
Otago4.134.406.7%$213.9$230.67.8%
Southland1.751.855.9%$94.9$100.05.4%
New Zealand74.1979.987.8%$3,794.4$4,076.17.4%
(growth rate this time last year)1.8%1.8%

About Paymark
In November 2009, Paymark honoured a significant business, retail, and economic milestone with the celebration of its 20th birthday. Since its inception in 1989 when three banks came together to form Electronic Transaction Services Limited (now known as Paymark Limited), Paymark has grown to become an integral part of New Zealand’s economic landscape with arguably the best EFTPOS system in the world.

Quick facts:
• By March 1990 volumes through the network exceeded 1 million transactions a month
• 1994 the company increased its computer processing power to accommodate volumes exceeding 10 million transactions a month
• 28 August 1996, Paymark makes history by installing an off-shore EFTPOS terminal at a general store, Scott Base, Antarctica
• In 1998 Paymark passed another milestone as the 1 billionth EFTPOS transaction was processed
• In February 2012, Paymark processed its 10 billionth transaction
• More than 74,000 merchants and 116,000 terminals are currently connected to the network that is now 3DES and EMV compliant. Today, the Paymark network processes over 75% of all electronic transactions in the New Zealand retail market on behalf of more than 50 card issuers and acquirers.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news