As the former boss of Air New Zealand, New Zealand PM Christopher Luxon seems particularly committed to the tourism cause in NZ.
Speaking on Wednesday at the country’s biggest travel industry event, Trenz, Luxon flagged the sector’s value to New Zealand, worth some $44 billion a year. And though that might sound like a lot, he reckons there’s plenty of room for growth.
“Tourism contributes about seven and a half percent of our total GDP, and it continues to be our second highest export. But we actually do have room for more,” the PM told attendees at Trenz, which is being held in Rotorua – a region Luxon calls the home of tourism in New Zealand, thanks to the treks many made to its famous pink and white terraces in the 19th century.
“Last year, we welcomed over 3 million visitors to our country, which is a 12% increase on the previous year, but it’s still below where we were at pre-COVID levels.
“So there’s plenty of capacity for more international tourists to visit our shores.”
By far the biggest source market for visitors is Australia.
Rebecca Ingram, CEO of Tourism Industry Aotearoa (TIA), which manages Trenz, calls Australia the “bedrock of our tourism economy”.
“We love welcoming Australians who are here for a holiday, here to visit friends and family, popping over for business, popping over for a conference, because that connectivity that we have between our two countries is so important,” Ingram tells Karryon in an Australian exclusive interview at Trenz.
“So 54% of all our arrivals are coming here for a holiday. By far and away, the most are coming to us from Australia.
“And so it’s really important that number one, we never take that for granted, but number two, that we’re thinking about what it is that our Aussie friends want to experience, and how they want to enjoy New Zealand” – be it through the country’s stunning landscapes, adventure activities, food and wine, or Maori experiences, which are becoming increasingly sought after.
And there’s still room for growth from Australia, especially if sellers can cash in on intentions and convert more bookings.
“We’re also encouraging you to come now. Because, being so close… sometimes you might say, ‘oh, I’ll come to New Zealand at some point’,” Ingram adds. “We want you to come now.”
According to Tourism New Zealand Australia General Manager Andrew Waddel, Aussie visitation is heading in the right direction, even if it’s still slightly down on pre-pandemic numbers.
“Year-on-year growth (for the 12 months to February 2025) is 11%, and that’s increasing,” Waddel tells Karryon at Trenz.
“It’s grown to around 1.43 million, so that’s an extra 144,000 arrivals in the last year.”
Significantly, he says, holiday travel is driving that growth, with over 15% more Aussies choosing to take a Trans-Tasman vacation. And most importantly, growth is occurring “through winter, spring and into summer”. In other words, year-round travel to the country from Australia is on the rise.
“Australians travel to New Zealand all year round. There is a slight peak in the summer of about 30%, and then it’s evenly distributed across the remaining months,” he explains.
“But interestingly, they’re travelling for different reasons. So winter is snow, spring can be cycling and hiking, and autumn can be stargazing. They’ll travel in different seasons, and they’ll also return.”
In total, Aussie visitation is at 92% of where it was pre-Covid. But over the past three months, it’s at 96%.
“So that gives you an idea of the trajectory,” Andrew says. “And linking back to holidays, they’re at 100% of 2019 levels.”
Carrie Hurihanganui, CEO of New Zealand’s largest gateway, Auckland Airport, share the optimistic outlook for the Australian market.
“On the visitation front, Aussies account for 42% of the total number of overseas visitor arrivals to New Zealand in the 12 months to December of last year,” she says at Trenz 2025.
According to Hurihanganui, this represents a significant recovery and a turnaround from concerns raised at last year’s event.
The AKL boss attributes the recovery to increased airline capacity and more competitive airfares. But she cautions that “collectively, we do need to keep working on attracting Australian visitors in order to get back to the 100% and above”.
Hurihanganui adds that the importance of clear messaging and a strong New Zealand presence in key markets like Australia cannot be overstated.
“We need to continue to convert the millions of people who say they want to come to New Zealand one day in the future, to book and come now,” she explains.
And if they do that, kiwi tourism authorities can expect a solid year.
“I think 2025 is the year that we actually get to strengthen the value of tourism and to drive New Zealand to be a humming, vibrant country,” the PM says.
“Together, we can continue to work on being a prosperous sector that provides high-quality experiences and services. So we have to be bold and brave and take those chances.”
Karryon attended Trenz 2025 as a guest of TIA and Air New Zealand. For more info on Trenz 2025, click here.
Check out how Rotorua welcomed delegates to New Zealand’s biggest travel trade event here.
All images (except top) by Mark Harada.
