Tourism data

Slower start to tourism arrivals in January

Our take on the latest Tourism data (Tue 14 Mar 2023)

Foreign tourist arrivals total 265,388 in January
Australian tourist arrivals ease to 80% of pre-pandemic levels
Kiwi departures reach 78% of pre-pandemic levels

The key numbers...

  • There were 153,106 Kiwi departures in January 2023, reaching 78% of pre-pandemic (January 2019) levels. Departures were stronger than December, when Kiwi departures were only 73% of pre-pandemic levels.
  • Foreign tourist arrivals as a proportion of pre-pandemic levels have been steadily increasing since January 2022, peaking at 68% in December. However, the recovery of tourist arrivals eased slightly in January, with 265,388 foreign tourist arrivals, which was only 67% of pre-pandemic levels.
  • Arrivals from Australia eased to 80% of pre-pandemic levels, down from 85% in December. United Kingdom arrivals fell from 85% of pre-pandemic levels in December to 73% in January. The recovery of arrivals from China, South Korea, and France also softened.
  • The recovery of arrival numbers into Auckland, Christchurch and Wellington airports faltered too. Queenstown fared better, with arrivals continuing to grow as a proportion of pre-pandemic levels, outnumbering arrivals in January 2019 by 22%.

Arrivals backing off?

Monthly tourism arrivals, % of pre-pandemic levels
4498

...and our reaction

  • Foreign tourist arrivals weakened in January, while domestic departures strengthened. A strong NZ dollar in January could have encouraged Kiwis to spend their money abroad, as well as deterred foreign tourists on budgets already stretched by weakening global economic conditions.
  • It’s too early to say whether this is a definitive turnaround for tourism arrivals, though we expect the recovery to remain modest in the face of a looming global recession. The softening of Australian arrivals was surprising, given that short-haul flights are often favoured in times of economic downturn.
  • As the NZ dollar softens further from its January peak and the cost-of-living crisis continues (with food price challenges further exacerbated by Cyclone Gabrielle), the strength of Kiwi departures is likely to moderate.