How Much Does Tourism Contribute to New Zealand Economy?

By Michael Ferguson

New Zealand is a beautiful country that attracts millions of tourists every year. From stunning landscapes to adventure sports, New Zealand has plenty to offer to tourists.

But have you ever wondered how much tourism contributes to the New Zealand economy? Let’s take a closer look.

Overview of Tourism in New Zealand

Tourism is one of the largest industries in New Zealand, contributing significantly to the economy. In fact, it is the largest export industry in the country. According to the Ministry of Business, Innovation and Employment (MBIE), international tourism contributed NZD 16.2 billion to the economy in 2019, which is approximately 5.8% of New Zealand’s GDP.

Employment Opportunities

Tourism not only contributes to the economy but also creates job opportunities for people in various sectors. In 2019, tourism directly employed around 229,566 people in New Zealand. This number includes people working in hotels, restaurants, transportation, and other related industries.

Contribution to Regional Development

Tourism has also been instrumental in developing regional economies across New Zealand. Many small towns and regions rely heavily on tourism for their economic growth. The tourism industry has helped create jobs and businesses that benefit local communities and contribute to their growth.

The Impact of COVID-19 on Tourism

The COVID-19 pandemic has had a significant impact on the tourism industry worldwide, and New Zealand is no exception. Due to travel restrictions and border closures worldwide, international tourist arrivals have decreased dramatically since early 2020.

According to MBIE data released in April 2021, international visitor arrivals were down by 98% compared to April 2019 figures. This has had an enormous impact on businesses that rely on tourism for their survival.

Government Support for Tourism Industry

The New Zealand government has recognized the importance of the tourism industry and has provided support to businesses affected by the pandemic. The Tourism Recovery Package, announced in May 2020, provided NZD 400 million in funding to help businesses survive through these challenging times.

Conclusion

Tourism is a vital industry for New Zealand, contributing significantly to the economy and providing employment opportunities to people across the country. While COVID-19 has had a severe impact on the industry, there is hope that with government support and vaccination efforts, tourism will bounce back in New Zealand.