ASB: Global economy, weak NZ$, growing connectivity to sustain tourism boom

The strengthening global economy, lower NZ dollar and increasing international mobility and connectivity will sustain the current tourism boom, according to bank ASB.

“It’s still boom times for the tourism sector,” said ASB yesterday in a note following Stats NZ’s migration and tourism report for November. “Visitor arrivals registered its second successive 2%+ monthly climb, with another record annual high being achieved.”

In the year to November, 3.71 million visitors arrived in New Zealand, according to Stats NZ. That was an 8% increase on the November 2016 year.

In the month of November, short-term visitor arrivals were up 2.5% on the same month last year to 360,100.

“Short-term visitor arrivals have strongly recovered from their post-Lions Tour lift, with the annual total hitting another record high,” said ASB.

“The strengthening global backdrop and lower NZ dollar should underpin high levels of tourism spending, a key support to the NZ economy.”

Increasing global mobility and connectivity would also be a key driver sustaining growth.

“The allure of NZ as a tourism destination remains high, but a lower NZ dollar would help to boost tourism receipts and encourage more domestic tourism. The ability to sustainably lift tourism earnings will depend on our ability to target and attract higher-spending tourists.”

Another bank, ANZ said one-off events had clouded the visitor arrival picture.

“But two solid months have seen the rate of annual growth in tourist arrivals bounce,” said ANZ. “However, we don’t expect a return to double-digit growth due to capacity issues.”

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