Have you ever wondered how much of New Zealand’s economy is driven by tourism? The answer may surprise you. New Zealand’s tourism industry has been a major contributor to the country’s economy for many years, and it continues to be a vital part of its economic landscape.
The Importance of Tourism in New Zealand
Tourism is one of the largest industries in New Zealand, and it plays a significant role in the country’s overall economy. According to the Ministry of Business, Innovation and Employment (MBIE), tourism directly contributes around 5.8% of New Zealand’s GDP (Gross Domestic Product). This equates to approximately $16.2 billion per year.
The Impact on Employment
Tourism also creates jobs for thousands of Kiwis. In fact, the industry is one of the largest employers in the country, providing employment for over 230,000 people. This includes jobs in accommodation, food services, transportation, and other related industries.
International Visitors
New Zealand attracts millions of international visitors each year who come to experience its stunning natural beauty and unique culture. In 2019, there were over 3.9 million international visitors to New Zealand. These visitors spent approximately $17.2 billion during their stay.
Domestic Tourism
While international visitors are an essential component of New Zealand’s tourism industry, domestic tourism also plays a significant role. Domestic tourists spend around $23 billion every year while travelling within the country.
- This includes:
- Visiting friends and relatives
- Business travel
- Holiday travel within New Zealand.
The Impact on Regional Economies
Tourism is critical for many regional economies in New Zealand, especially those that are remote or have limited economic opportunities. For example, regions such as Queenstown, Rotorua, and Taupo heavily rely on tourism to support their local economies.
The Future of Tourism in New Zealand
While the COVID-19 pandemic has had a significant impact on the tourism industry globally, New Zealand’s response to the pandemic has been praised for its effectiveness. The country’s strict border controls have helped to control the spread of COVID-19 within New Zealand. However, this has also resulted in a significant reduction in international visitors.
The government has implemented several measures to support the industry, including the Tourism Recovery Fund and the Strategic Tourism Assets Protection Programme. These initiatives aim to help businesses survive in the short-term and invest in long-term growth.
Conclusion
Tourism is an essential industry in New Zealand that contributes significantly to its economy. While the COVID-19 pandemic has caused significant disruption, it is hoped that with continued government support and effective management of the virus, tourism will continue to play a vital role in New Zealand’s economic recovery.