Summary:
Data for October '24 highlighted some challenges for tourism on the West Coast, with declines in visitor card spending and accommodation use, while the number of filled jobs in tourism-related employment remained relatively stable. On a positive note, tourism-related employment earnings increased significantly.
Both international and domestic visitor card spending decreased slightly by -3% YoY. International guest nights fell by -14% YoY, while domestic guest nights rose marginally by +1% YoY. The slower decline in international card spending relative to guest nights suggests either an increase in average spend per visitor or shorter trips by international visitors.
While card spending on retail fuel declined across both markets (domestic -9% YoY, international -12% YoY), card spending on transport products increased (domestic +20% YoY, international +4% YoY), maybe hinting at a shift toward alternative transport options.
In the domestic market, card spending on food and beverage services grew by +2% YoY, outpacing the -2% YoY decline in retail food and beverage spending, indicating a growing preference for dining out. Additionally, domestic card spending on recreation products rose by +3% YoY. The overall decline in domestic card spending was primarily driven by Cantabrians (-5% YoY) and visitors from Otago (-7% YoY). Among the top five domestic markets by card spend volume, Nelson stood out with significant growth (+10% YoY).
In the international market, Australia remained the top spender for the fifth consecutive month but is likely to be overtaken by the U.S. soon. The U.S. market was the only top-five international market to post YoY growth (+9%). A standout performer was the Africa and Middle East market, with card spending up by +43% YoY, far exceeding the national average of +26% YoY.
Year-end data revealed strong growth in international card spending across the districts, led by Buller (+26% YoY), followed by Grey (+23% YoY) and Westland (+15% YoY). Buller also recorded the most significant increase in domestic card spending (+10% YoY), driven by substantial growth in recreation product spending (domestic +75% YoY, international +53% YoY).
Commercial accommodation occupancy rates fell by -3%pt YoY, as total guest nights declined by -7% YoY. The decline was most pronounced in backpackers (-39% YoY) and holiday parks and campgrounds (-11% YoY). In contrast, guest nights in hotels (+8% YoY) and lodges and boutique accommodations (+28% YoY) increased, particularly among international visitors. International guest nights in hotels grew by +25% YoY, and in lodges and boutique accommodations by an impressive +67% YoY.
At the TA level, Westland performed best in international guest nights, recording the smallest decrease (-9% YoY). Grey District led in domestic guest nights with a +7% YoY increase, while Buller was the only district to see an increase in short-term rental occupancies (+3%pt YoY). Labour Day weekend significantly boosted short-term rental occupancy rates, peaking at 75% on Saturday, October 26.
The number of filled jobs in tourism-related industries declined slightly by -1% YoY, with a -2% YoY decrease in Buller District and a -1% YoY drop in Grey District. Notably, the strongest growth in employment earnings occurred in Grey District (+21% YoY compared to +11% YoY in other districts). While Buller saw a -12% YoY decline in filled jobs in food and beverage services, Grey recorded an +8% YoY increase in this industry.
Despite declines in visitor spending and accommodation use, the West Coast showed positive trends in recreation-focused tourism, growth in premium accommodation use, and strong employment earnings, particularly in Grey District. These indicators suggest resilience and evolving preferences among visitors.