West Coast Destination Insights Dashboard

Summary:

Fewer domestic overnights, robust international spend, and job

declines

July was a challenging month for the West Coast's tourism sector. Despite a

slight rise in domestic card spend, commercial accommodation declined,

with a notable drop in both guest nights and occupancy. This was driven by

a decrease in both guest arrivals and average stay length. However,

international card spend showed strong growth. Tourism-related

employment for the month saw a decline.


Spending outpaces guest nights, hinting at day trips or average

spend

An increase in total domestic card spend (+1% YoY) when compared with the

domestic guest night decline of -13% YoY suggested that either the relative

average spend had increased, or the prevalence of day trip visitation. The

international card spend increase of +8% YoY, when contrasted with a +4%

YoY rise in international guest nights, also suggested a lesser increase in

average spend, or the prevalence of day trip visitation.

Domestic visitors self-cater, while internationals dine out more

When segmenting card spend by product type, international card spend

grew for all categories except for recreation (-2% YoY), whilst domestic card

spend by product produced mixed results. Food and beverage serving

showed further growth for the international market (+14% YoY) and a greater

contraction for the domestic market (-12% YoY) when compared to food and

beverage retail (domestic: -2% YoY, international: +4% YoY). This

observation suggested a continuing preference toward self-catering for

domestic visitors, while international visitors appeared to prefer dining out.

Domestic spending edges up, supported by West Coast support

Domestic card spend increased fractionally (+1% YoY) in July, which was on

par with the Marlborough and Hurunui RTO regions (both +1% YoY), and well

above the national average of -5% YoY. West Coast locals contributed to the

positive spend growth (+6% YoY), alongside other notable markets: Tasman

(+5% YoY), Nelson (+4% YoY), and Marlborough (+13% YoY).

Aussie and UK spending climb in July, while US declines

International card spend showed strong growth (+8% YoY) in July, equal to

Canterbury (+8% YoY). The Australian market grew strongly by +22% YoY,

taking the top position for distribution of total international market spend.

This was congruent with the off-season trend of 2023 and 2024. Other

notable market growth included the UK, which jumped by +26% YoY. The US

market declined by -11% YoY, a result that contrasted with significant growth

in most other RTO regions.

Domestic slowdown causes occupancy drop and shorter average

stays

Commercial accommodation declined overall for the West Coast region in

July, with occupancy falling by -2%pt. YoY and guest nights down by -9%

YoY. The drop in guest nights was driven by declines in both the average

stay length (-5% YoY) and guest arrivals (-3% YoY), while the fall in

occupancy was further exacerbated by an increase in available stay units

(+4% YoY). A comparison of the market mix, which showed international

guest nights were stable (0% YoY) while domestic guest nights fell by -13%

YoY, indicated that the decrease in average stay length and arrivals was

primarily attributable to domestic travellers.

Lodges and boutique spots double, propelled by international visitors

When segmented by accommodation type, guest nights decreased across

nearly all categories (holiday parks and campgrounds: -14% YoY, smaller

motels and apartments: -7% YoY, hotels: -8% YoY, backpackers: -13% YoY,

and large motels and apartments: -18% YoY), with the exception of lodges

and boutique accommodation, which doubled in guest nights (+100% YoY)

relative to July 2024. This growth was comprised of a +58% YoY increase in

domestic guest nights and an almighty shift (+450% YoY) in international

guest nights. This highlighted its strength as an emerging market, as shown

in the quarter-end figures (+357% YoY international guest nights vs. +32%

YoY domestic guest nights).

Guest declines persist despite pockets of international growth

Guest nights decreased across all TAs in July: the Westland District was

down by -5% YoY, the Buller District by -13% YoY, and the Grey District by

-10% YoY. These declines occurred despite an increase in international

guest nights in the Buller (+2% YoY) and Grey (+9% YoY) Districts. The

Westland District declined in both international (-3% YoY) and domestic (-7%

YoY) guest nights.

Tourism job dip in July, driven by food and accommodation

Tourism-related employment decreased by -3% YoY overall in July, a result

that aligned with the Mackenzie region (-3% YoY) but trailed the stable

growth seen in the national average (+1% YoY). This decrease was driven

primarily by the two largest tourism-related employment industries, food and

beverage services (-3% YoY) and accommodation (-8% YoY), and was

mitigated somewhat by recreation (+24% YoY) and travel and tour services

(+20% YoY).


Employment and accommodation decline, with minor stability in

places

Contractions in tourism employment were noted in the Westland (-4% YoY)

and Buller (-4% YoY) districts, whilst the Grey district remained stable at 0%

YoY. Food and beverage services declined by -7% YoY in the Westland

District, whilst remaining stable in both the Buller and Grey districts (0%

YoY). A decline in accommodation was reported in all three districts

(Westland District: -6% YoY, Grey District: -10% YoY, and Buller District: -8%

YoY).