Tourism data

Arrival numbers climbing, capacity issues looming

Our take on the latest Tourism data (Mon 12 Dec 2022)

Foreign tourist arrivals total 161,600 in October
Queenstown Airport arrivals at 94% of pre-pandemic levels
Kiwi tourist departures at 70% of pre-pandemic levels

The key numbers...

  • Inbound tourist arrivals totalled 161,600 in October, up 6.8% from 151,300 in September 2022.
  • There were 86,300 Australian arrivals in October 2022, bringing Australian visitor numbers to 72% of pre-pandemic levels. Arrivals from the UK, Canada, and United States have surpassed 60% of their pre-pandemic levels.
  • Kiwi tourist departures outnumbered inbound arrivals departures by 34,400, buy this gap has been shrinking steadily over the past few months.
  • Queenstown Airport arrivals were at 94% of pre-pandemic levels in October, while Auckland and Wellington were at 54% and 66% respectively. October was a slightly weaker month for Queenstown than September, when arrivals into the town were at 99% of pre-pandemic levels.

Net tourism gap closing

Monthly tourism passenger counts
4413

...and our reaction

  • October was a marginally weaker month for foreign tourist arrivals when compared to pre-COVID numbers, at 57% of pre-pandemic levels compared to 58% in September. Based on typical seasonal patterns, we expect strong tourist arrival numbers coming into the summer months and could see arrivals begin to outnumber departures.
  • Labour capacity remains a challenge for the tourism sector. Although the Working Holiday Visa scheme is helping to ease labour shortages, persistent labour constraints mean the tourism industry could struggle to meet growing tourism demand.  A shortage of workers translates to longer wait times while flying due to airport staffing issues, difficulty for tourists booking hotel rooms as supply is unable to meet demand, and a thinly stretched workforce in the sector.
  • Weaker global economic growth in 2023 could limit growth in international visitor numbers. Australian arrivals could continue to recover faster than the rest of the world, because short-haul travel tends to be favoured during periods of weaker economic growth.
  • A pivoting of New Zealand’s tourism marketing towards high-spending tourists, as well as increasing airfares that restrict New Zealand to wealthier tourists, could help us to maintain revenue growth in the tourism sector.