Summary:
December 2024, marking the first month of the summer season, presented a largely positive outlook for tourism on the West Coast. Visitor card spending, commercial accommodation activity, and tourism-related employment earnings all saw increases.
International visitor card spend grew (+6% YoY), outpacing international guest nights in commercial accommodation, which remained stable. This indicates a rise in average card spending per international visitor. In contrast, the domestic market experienced stronger guest night growth (+12% YoY) compared to domestic card spend (+7% YoY), suggesting a decline in average spend, a decrease in day trips, or a combination of both. Notably, domestic visitor card spend on accommodation products rose significantly (+16% YoY), aligning with the increase in commercial accommodation use.
While international card spend growth (+6% YoY) lagged behind the national average (+15% YoY), domestic visitor card spend (+7% YoY) was significantly ahead of the national average (-2% YoY). The US market, the largest international contributor in terms of international card spend volume, recorded +17% YoY growth—well below the national average of +35% YoY. However, the Australian market showed signs of recovery (+1% YoY) after consistent YoY declines since June '24, and despite a -3% YoY drop nationally for December '24. Strong domestic card spend growth was driven by both Cantabrians (+8% YoY) and West Coast residents traveling within the region (+10% YoY), with notable increases from visitors from Wellington (+18% YoY) and the Bay of Plenty (+41% YoY).
At the district level, Buller led in year-ending domestic visitor card spend growth (+11% YoY), while Westland (+1% YoY) and Grey (-1% YoY) remained stable. Buller also recorded the highest growth in year-ending international card spend at +27% YoY, followed closely by Grey (+21% YoY), while Westland lagged behind (+12% YoY).
The occupancy rate in commercial accommodation remained stable compared to December '23, while short-term rental occupancy declined (-7%pt YoY), both in line with national trends. Despite a +5% YoY rise in guest nights and a slight reduction in available stay units (-1% YoY), the overall occupancy rate remained steady as the average number of guests per stay unit increased in proportion to guest nights. Growth in guest nights was driven by a +12% YoY rise in domestic guest nights, while international guest nights remained stable. Additionally, an increase in average stay length helped offset relatively stable total guest arrivals.
At the district level, Buller experienced the strongest growth in total guest nights (+9% YoY), largely driven by a substantial increase in domestic guest nights (+28% YoY), though partially offset by a -6% decline in international guest nights. Grey recorded the highest growth in international guest nights (+6% YoY).
A notable shift was observed in backpacker accommodations, which saw a decline in international guest nights (-14% YoY) while domestic guest nights increased (+11% YoY)—a trend opposite to the national average. Hotels were the only accommodation type to record growth in international guest nights, with a significant +21% YoY increase. Meanwhile, holiday parks and campgrounds saw the strongest growth in domestic guest nights (+26% YoY).
Tourism-related employment remained stable in terms of filled jobs, while employment earnings grew significantly (+17% YoY). In line with year-ending card spend growth, Buller recorded the highest employment growth, with filled jobs increasing by +6% YoY and employment earnings surging by +30% YoY. The accommodation sector also saw strong job growth, particularly in Buller, where filled jobs in the sector rose by +17% YoY.