Summary:
April sees strong gains in spending, occupancy, and tourism jobs
April was a strong month for tourism on the West Coast, with guest nights and card spend growing in both domestic and international markets. Occupancy rates rose in both commercial and short-term rentals, exceeding the national average, with large motels, hotels, and holiday parks showing particularly strong performance. Employment in tourism-related sectors also increased slightly, led by gains in Grey and Buller Districts. Note that while Easter fell into April this year, it was mostly in March last year—partly explaining the strong domestic performance in the accommodation sector.
Guest nights outpacing spend, pointing to changing travel behaviors
Guest nights in both the domestic (+18% YoY) and international (+11% YoY) markets grew at a faster rate than card spend (domestic: +14% YoY; international: +4% YoY), suggesting either a reduction in average spend or a decline in the prevalence of day trips. The drop in international card spend on retail fuel (-4% YoY) may indicate a shift toward slower travel by a smaller cohort of international visitors. Notably, international card spend on accommodation products declined sharply (-24% YoY), likely pointing to a shift towards pre-booked accommodation rather than subdued growth in overall spend.
Spending rises in hospitality and scenic transport services
In both markets, card spend on food and beverage serving products outpaced that in food and beverage retail, a positive signal for the hospitality sector. Strong year-on-year growth was also observed in transport-related products, including scenic flights, cruises, and coach services—up +54% in the domestic market and +35% in the international market.
Cantabrians drive spending, while West Coasters reduce outlay
Domestic card spend was notably driven by the Cantabrian market, which recorded a +21% YoY increase. In contrast, spend from the West Coast market declined by -6% YoY, possibly reflecting increased travel outside the region (national average card spend from West Coasters: -1% YoY).
US spending remains strong, Australia surges past national average
Internationally, card spend by the US market remained elevated at +21% YoY but trailed the national average of +31% YoY. Conversely, the Australian market rebounded, posting a +11% YoY increase, significantly outperforming the national average (-1% YoY).
Westland lifts regional domestic spend, Buller leads international gains
Year-ending data showed the Westland District leading domestic card spend growth (+5% YoY), though this came at the cost of a decline in international spend (-5% YoY). Buller District, on the other hand, saw the strongest international card spend growth (+3% YoY), in line with growth seen in its domestic market. Westland’s international card spend decline was mainly driven by a significant drop in accommodation product spend (-25% YoY), likely reflecting a shift toward pre-booked options as international guest nights increased.
Buller sees Cantabrian boost, while Grey leads US spend
Buller District saw increased preference among Cantabrians, with card spend rising +11% YoY, followed by Westland (+7% YoY) and Grey (+5% YoY). Among international markets, Grey District saw the highest increase in US visitor card spend (+13% YoY), followed by Westland (+7% YoY) and Buller (+65% YoY).
Domestic travel propels occupancy growth across commercial and rentals
Accommodation occupancy improved in both the commercial and short-term rental segments, outpacing the national average. The +5%pt lift in commercial occupancy was driven by a +14% YoY rise in guest nights, complemented by a -2% YoY reduction in available rooms. Domestic guest nights (+18% YoY) continued to grow more strongly than international guest nights (+11% YoY).
Large motels, hotels, and holiday parks boost YoY occupancy
Significant growth was seen in large motels with over 20 stay units (+30% YoY), hotels (+21% YoY), and holiday parks & campgrounds (+21% YoY), leading to occupancy increases of +15%pt, +7%pt, and +5%pt YoY respectively. Guest nights in lodges and boutique accommodation remained flat overall, with a +16% YoY increase in domestic guest nights balancing a -27% YoY drop in international guest nights.
Westland’s YoY rise outpaces others, driven by local travellers
At the district level, Westland emerged as the standout performer with +21% YoY growth in guest nights, primarily driven by domestic demand (+30% YoY). International guest nights grew equally in Westland (+14% YoY) and Grey (+13% YoY).
West Coast employment grows, led by Grey, Buller
Tourism employment on the West Coast increased modestly by +1% YoY in April, with Grey (+4% YoY) and Buller (+2% YoY) contributing positively. Westland experienced a slight decline of -1% YoY.
Food and beverage jobs continue to climb, accommodation sees continued gains
Employment in the food and beverage sector continued to grow, with Grey up +7% YoY and Buller +6% YoY. Westland remained unchanged (0% YoY). Employment in the accommodation sector also increased in Buller (+8% YoY) and Westland (+3% YoY).