New Zealand Tourism Report Q2 2016
BMI View: Tourism in New Zealand is experiencing strong growth. Tourist arrivals are increasing rapidly;regularly hitting record numbers, and fuelling high demand for accommodation and leisure services.
Indeed, in some, particularly popular tourist destinations, resources are being so stretched that towns areexperiencing water shortages and overcrowded roads. This growth in inbound tourism is, however, set tocontinue throughout the forecast period and requires strong investment in both travel infrastructure and themanagement of natural resources. Despite a strong presence from some of the major international hotelchains, there is significant opportunity for development in the mid-range sector and a number of domesticand international companies have major projects in the pipeline.
Key Updates And Forecasts
From the beginning of 2016, a border tax has come into force for all inbound tourists to New Zealand.This tax has been imposed by the government as tourism booms to account for the growing costs ofborder control. Although only a minimal amount, many experts feel the tax could be extremely negativefor the lucrative tourism sector, discouraging as many as 35,000 tourists from visiting the country thisyear alone. It has been argued that other options should be explored to cover the border control expenses.
The introduction of this tax has slightly lowered our forecast for inbound tourism numbers, from 3.9mnin 2020 to 3.7mn.
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