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Tourism boosts New Zealand's economy by $10B in 2023 but global challenges ahead

Tourism is now New Zealand’s second-largest export with international tourist spend increasing by NZD$10.8 billion (AUD$10 billion) in 2023 as visitation returned to pre-pandemic levels. That’s great news for the one in nine Kiwis employed in the sector but global ripples mean it’s not quite smooth sailing yet.

Tourism is now New Zealand’s second-largest export with international tourist spend increasing by NZD$10.8 billion (AUD$10 billion) in 2023 as visitation returned to pre-pandemic levels. That’s great news for the one in nine Kiwis employed in the sector but global ripples mean it’s not quite smooth sailing yet.

The latest annual Tourism Satellite Account shows 2023’s total tourism expenditure was NZD$37.8 billion (around AUD$37 billion), up 39.6 per cent or $NZD10.7 billion on the previous year.

The data positions tourism as New Zealand’s second-largest export earner. Before the pandemic, tourism was the country’s largest export.

To March 2023, NZ welcomed 2.2 million international arrivals with its top visitors from Australia, the US and China. The median length of stay for holiday visitors was 10 days.

The data also shows an additional 6,786 tourism operators are back and operating post-pandemic.

New Zealand’s tourism industry directly and indirectly employs 317,514 New Zealanders.

Challenges ahead for Tourism New Zealand

Hui Kaihāpai New Zealand
New Zealand offers a range of diverse experiences for visitors to enjoy. Image: Tourism New Zealand

However, Tourism New Zealand Chief Executive Rene de Monchy warned that continued tourism levels and growth are not guaranteed amid global challenges.

“The pool of people in our key markets who are actively considering visiting New Zealand has reduced by about 14 per cent since COVID-19,” he said.

“Cost of living pressures, strong competition from other destinations and readiness to travel post-pandemic have contributed to this decline.

 “Tourism New Zealand is working hard to encourage visitation with a focus on the off-peak months to support the sector increase its year-round productivity and sustainability.”

Mr de Monchy said Tourism New Zealand would share its FY25 plans and activity at upcoming industry events.

By 2030, NZ wants all visitors to be high-quality tourists who will contribute positively to the country.

Read the full report here.