Thursday, February 14, 2013

International tourism in NZ - what's it worth?



The Minister of Tourism, who also happens to be the Prime Minister, likes to go on about how valuable tourism is to the New Zealand economy. He is correct that tourism contributes a substantial amount to the economy - $23.4 billion was spent on tourism in 2012[1], contributing $6.2 billion or 3.3 percent to the country’s Gross Domestic Product.

It is interesting to note, however, that $13.8 billion of the $23.4 billion spent was done so by domestic tourists, a fact that John Key may have forgotten to mention on his various jaunts overseas to promote New Zealand as a tourist destination. Such business has, in my view, a bleak future.

Peak Oil and Climate Change will limit global tourism, placing far greater importance on local tourism. While this will reduce the amount of overseas tourists (and their foreign currency) entering the New Zealand economy, it will also mean that New Zealanders will increasingly spend their tourist dollars within the New Zealand economy. Tourism, much like the rest of the economy, is a sector that should promote the ‘buy local’ ethos.

Indeed, in December 2012, 216,800 New Zealanders travelled overseas. What if these people travelled within New Zealand, spending their tourist dollars in our economy rather than other countries’ economies?

If New Zealand is to prepare itself for the future, it’s high time to invest in sustainable public transport infrastructure that will facilitate not only domestic tourism, but also the efficient, low-carbon transportation of goods and services throughout the country. 

And, while we’re at it, perhaps the Minister of Tourism should save the carbon emissions and spend his tourist dollars in our economy. I haven’t been to Hawaii, but I can certainly provide a few suggestions for lovely beaches in New Zealand!



[1] “Tourism expenditure includes spending by all travellers, whether they are international, resident householders, or business and government travellers. International tourism expenditure includes spending by foreign students studying in New Zealand for less than 12 months.” Statistics New Zealand (2012). Tourism Satellite Account: 2012. Wellington: Statistics New Zealand. P. 9. Available from www.stats.govt.nz

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