Tourism industry still hurting from lack of overseas visitors despite domestic spending boost

Domestic spending is up 12 per cent since June this year but that hasn’t been enough for our tourism hotspots.

Overseas visitors usually provide the biggest boost to the economy in summer but this year Covid-19 border restrictions have stopped millions of people from reaching our shores, with locals the only customers.

New figures from Infometrics show domestic tourism is being felt differently around the country, with tourism hot spots still struggling overall.

Auckland has been the worst hit with a 40 per cent decrease in yearly tourism profit from June to October.

“We have had the perfect storm here, we are a big international tourist destination usually so that's certainly been something that has hit the city centre quite hard, we've also had the impact of people working from home and the lack of international students,” Heart of the City Auckland’s Viv Beck said.

She’s calling on people to recognise that’s Auckland a great destination with a lot of new development

“I think our businesses would appreciate that loyalty continuing through the summer period because it certainly is a gap without our international tourists and we're hoping that we will see kiwis come here and Aucklanders to really enjoy the great offerings that we've got,” she said.

Wanaka’s overall tourism spend was down 27.3 per cent between June and October and Queenstown’s overall loss was 27 per cent.

The Mackenzie District, Wellington, Ruapehu and Rotorua are the other top seven places most severely affected.

Kiwis have made the most of exploring their backyard, with domestic spending increasing 12 per cent this year between June and October, a boost of $822 million.

Fiordland’s local tourism spend was up 140.3 per cent between June and October, the Mackenzie District was up 102 per cent and Queenstown had an increase of 77.6 per cent.

“They're battling hard and they're trying to bring in as many kiwis as possible but it hasn't quite been enough to make up that shortfall,” Infometrics economist Brad Olsen said.

Mr Olsen said locations close to the main city centres are best positioned overall, with Wairarapa at the top of the list with a 26.4 per cent boost to the overall tourism spend between June and October.

The Hurunui District enjoyed a 22.4 per cent increase, spending was up 17 per cent in Whanganui and Northland and up 15.4 per cent in Coromandel.

“Families are going away for a quick roadie, they're not wanting to go too far and spend too much but those quick getaways to the likes of the Wairarapa, up to Whanganui and Northland, those areas moving particularly well as we move through this,” Mr Olsen said.

Greytown business owner Michelle Forward of the Lolly Jar said she’s seen more people travelling through the area.

“This is a great place to stop if you're coming from either Hawkes Bay way or Wellington,” she said.

South Wairarapa District Mayor Alex Beijen said the area has lost money from the border closure like all locations but attributes 70 per cent of the tourism spend usually coming from locals as helping the region get through.

“No matter what happens from a global perspective which can be quite fickle you’ve always got these people on your doorstep and you've really got to keep your connection with them to have a sustainable business model in tourism,” he said.

It’s a focus that’s paid off, with more people from Auckland and Waikato now visiting.

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