New Zealand is known for its breathtaking landscapes, diverse culture, and friendly locals. It’s no surprise that tourism is a significant contributor to the country’s economy. But just how much of New Zealand’s GDP is made up of tourism?
According to the latest data from Stats NZ, tourism directly contributed to 5.8% of New Zealand’s GDP in the year ended March 2020. This figure includes spending by both domestic and international tourists on accommodation, food and beverage services, transport, activities, and other related expenses.
While this may seem like a small percentage, when you consider that New Zealand’s total GDP was around $212 billion in 2020, tourism contributed approximately $12.3 billion to the economy.
But the impact of tourism goes beyond just direct contributions to GDP. Indirectly, it also supports other industries such as retail and construction. For example, tourists need souvenirs and other goods while they’re travelling, which helps support local businesses.
Furthermore, tourism creates jobs for many New Zealanders. According to Tourism Industry Aotearoa (TIA), approximately one in seven people employed in New Zealand work in the tourism industry. This includes jobs such as hotel staff, tour operators, and travel agents.
It’s important to note that while tourism is a significant contributor to New Zealand’s economy, it’s not without its challenges. The COVID-19 pandemic has had a massive impact on the industry worldwide, with border closures and travel restrictions leading to a significant decrease in tourist numbers.
In response to this challenge, New Zealand has implemented initiatives such as the Tourism Recovery Package aimed at supporting businesses affected by the pandemic. The government has also launched campaigns promoting domestic tourism to help boost local economies.
In conclusion, while tourism may not make up a massive percentage of New Zealand’s GDP compared to some other countries’, it still plays an essential role in supporting local businesses and creating jobs for New Zealanders. It’s crucial for the industry to continue to adapt and evolve, especially in these challenging times, to ensure that it remains a significant contributor to the country’s economy.