Our take on the latest Tourism data (Thu 14 May 2020)
Tourist arrivals down 54%pa
Departures of NZ tourists down 58%pa
Chinese arrivals down 96%pa
The key numbers...
- Tourist arrivals declined by 54%pa in March and tourist departures by 58%pa, as New Zealand closed its borders from March 20.
- With the ban on travel to and from China in place for the whole of March, save for very limited exceptions, arrivals from China declined by 96%pa.
- Arrivals from Australia made up more than 40% of the much reduced March total, while the USA made up 14% of arrivals.
Tourist arrivals and departures
Annual % change
...and our reaction
- The closure of New Zealand’s international border is an event unlike anything we’ve ever experienced. The decline in tourist arrivals will send shock waves through the economy, as the international tourism sector is effectively shut down for at least the next year.
- We predict that the worst of the job losses in the tourism and hospitality sectors are yet to come, as government’s wage subsidy delays the full effect of the border closure and shutdown in these sectors.
- While a possible trans-Tasman bubble might provide something of a lifeline to the tourism industry, it’s likely that domestic tourism will be the only game in town for the next few months.
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