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

 

Media: Fairfax Moves To Create Modern Newsroom

Fairfax Media New Zealand continues its newsroom transformation this week, with a proposal to further organise its editorial operations into focused, local teams and specialist national topic areas. More>>

ALSO:

Dairy: Fonterra Forecast For 2015/16 Season

Fonterra Co-operative Group Limited has today reduced its forecast Farmgate Milk Price for the 2014/15 season to $4.40 per kgMS. Along with its previously announced forecast dividend range of 20-30 cents per share, the change amounts to a forecast ... More>>

ALSO:

BusinessDesk: SkyCity Lifts Minimum Convention Centre Investment To $430M

SkyCity Entertainment Group, the casino operator, has lifted the minimum it will invest in the Auckland International Convention Centre to $430 million and said total costs including land may be $450 million to $470 million. More>>

Statistics: Drop In Dairy Prices Leads Fall In Exports

Total goods exports fell $240 million (5.5 percent) to $4.2 billion in April 2015 compared with April 2014, Statistics New Zealand said today. More>>

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>


BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>

BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news