New Zealand is a beautiful country that offers magnificent landscapes, unique culture, and exciting adventures. It’s no wonder that tourism plays a significant role in the country’s economy.
But just how much does New Zealand rely on tourism? Let’s take a closer look.
Overview of Tourism in New Zealand
Tourism is one of the largest industries in New Zealand, contributing approximately 6% to the country’s GDP and providing around 230,000 jobs. The industry has experienced steady growth over the years and has become a crucial source of income for many businesses.
International Visitors
New Zealand attracts millions of international visitors every year. In 2019, the country welcomed over 3.8 million visitors, with Australia being the largest market followed by China and the United States. International visitors spent approximately NZD 17 billion during their stay in New Zealand, which accounted for around 20% of the country’s total exports.
The Impact of COVID-19 on Tourism
The COVID-19 pandemic has had a significant impact on tourism worldwide, and New Zealand is no exception. With international borders closed to non-residents since March 2020, the number of international visitors dropped significantly. In April 2020, only 1,900 international visitors arrived in New Zealand compared to over 400,000 in April 2019.
The impact on businesses relying on tourism was severe with many forced to close down or reduce their operations significantly. The government provided support through various measures such as wage subsidies and grants to help businesses survive during this challenging time.
Domestic Tourism
Domestic tourism has been crucial for keeping some businesses afloat during this period when international borders are closed. New Zealanders have been encouraged to explore their own backyard and support local businesses.
In June 2020 alone, domestic tourists spent approximately NZD 1.4 billion, which was an increase of around 50% compared to the same period in 2019. The government has also introduced initiatives such as the ‘Explore Your Own Backyard’ campaign to boost domestic tourism further.
Conclusion
Tourism is an essential part of New Zealand’s economy, providing jobs and contributing significantly to the country’s GDP. However, the impact of COVID-19 has highlighted the need for diversification in the economy. While domestic tourism has provided some relief during this challenging time, it’s vital for New Zealand to continue exploring other industries and opportunities to ensure long-term economic sustainability.
In conclusion, New Zealand relies heavily on tourism, and while it faces challenges during this period of uncertainty, it remains an industry with immense potential for growth and development.