Why Is Tourism Important for the New Zealand Economy?

By Robert Palmer

Tourism is a significant contributor to the economy of New Zealand. This industry is a vital source of foreign exchange earnings and employment opportunities for the country.

The beautiful landscapes, adventure sports, and rich cultural heritage attract millions of tourists to New Zealand every year. In this article, we will explore why tourism is essential for the New Zealand economy.

Foreign Exchange Earnings

New Zealand’s tourism industry generates a substantial amount of foreign exchange earnings. According to the Ministry of Business, Innovation, and Employment (MBIE), international visitors spent $17.2 billion in New Zealand in the year ending March 2019. This figure represents a 1.6% increase from the previous year.

The foreign exchange earnings from tourism are crucial for New Zealand’s economy as it helps to bridge the gap between imports and exports. The country is heavily reliant on international trade, and tourism is an important component of it.

Employment Opportunities

Tourism provides employment opportunities for thousands of people in New Zealand. According to MBIE, the tourism industry directly employed 229,566 people in 2019. This figure represents 8% of New Zealand’s total workforce.

The industry provides employment opportunities across all sectors ranging from hospitality to transportation, retail, and activities like adventure sports and eco-tourism activities. Tourism offers both seasonal and permanent jobs that support local communities throughout the country.

Supporting Regional Growth

Tourism supports regional growth in New Zealand by creating jobs outside major cities like Auckland and Wellington. The industry helps to promote economic development in rural areas where other industries may not be as viable.

Many small businesses located in remote regions rely on tourism for their livelihoods, such as bed and breakfasts, restaurants, souvenir shops, tour operators, etc.

Promoting Cultural Heritage

New Zealand has a rich cultural heritage that attracts tourists from around the world. The country has a rich Maori culture that is celebrated through cultural performances, art, and crafts. Tourism helps to promote and preserve New Zealand’s cultural heritage by offering visitors an opportunity to experience it firsthand.

Conclusion

In conclusion, tourism is a vital contributor to the economy of New Zealand. It generates foreign exchange earnings, provides employment opportunities, supports regional growth, and promotes the country’s cultural heritage. Therefore, it is essential for the government and private sector to invest in this industry to ensure its sustainability and growth in the future.