Summary:
Overall declines reflect mixed results, shifting visitor behavior
In May '25, the West Coast saw overall declines in both domestic and international tourism spend and guest nights, with international card spend falling sharply (-15% YoY). Reduced retail fuel spend and shifting market behavior suggest fewer day trips and longer international stays. While large motels and international markets like the US performed well, accommodation and employment remained flat overall. Regional variation in spending and employment highlights uneven performance across the districts.
Lower international spend suggests fewer day trips or longer stays
Domestic card spend (-2% YoY) and domestic guest nights (-4% YoY) declined at similar rates. However, international card spend fell sharply (-15% YoY), well ahead of the decrease in international guest nights (-8% YoY), suggesting a decline in average spend, fewer day trips, or longer stays by international visitors. The significant drop in international spend on retail fuel (-19% YoY) compared to other categories supports the likelihood of fewer day trips, or slower-paced travel along the Coast.
Food and beverage lead domestic spending, with internationally growth slowing
Food and beverage retail continued to lead domestic spend categories, up +7% YoY—outpacing accommodation and surpassing the national average (+4% YoY). The same trend was observed for international spend (+4% YoY), though this was slower than quarterly (+7% YoY) and year-end (+6% YoY) growth, indicating some deceleration.
Cantabrians contribute to domestic spend decline, while Otago and Tasman grow
The -2% YoY decline in domestic card spend was mainly driven by Cantabrians (-3% YoY), though there was encouraging growth from Otago (+13% YoY) and Tasman (+21% YoY).
Amid shifting spend patterns, US leads while UK lags
Internationally, spend dropped -15% YoY, with the UK posting the steepest decline (-42% YoY), largely due to a -78% YoY fall in accommodation spend. Excluding accommodation, UK spend declined more moderately (-14% YoY), suggesting a shift toward pre-paid accommodation. In contrast, the US market grew +7% YoY and now accounts for one-third of all international spend, maintaining the top position over Australia—a reversal from previous years.
Domestic spending grows while international patterns shift across TAs
Year-ending May ’25 data shows consistent domestic growth in food and beverage retail across all TAs: +6% YoY in Westland, +2% YoY in Buller, and +1% YoY in Grey. Domestic accommodation spend also grew strongly in Grey (+27% YoY) and Westland (+12% YoY), though it dipped in Buller (-2% YoY). International spend on ‘retail other’ surged in Buller (+31% YoY), with more modest increases in Grey (+5% YoY) and a decline in Westland (-13% YoY).
Canterbury and the US remain top spend markets with steady growth
Canterbury (domestic) and the US (international) remained the leading spend markets, with year-end growth in every TA. Canterbury spend rose +8% YoY in Buller, +5% YoY in Westland, and +4% YoY in Grey Districts. US market spend increased +4% YoY in Buller, +6% YoY in Westland, and +11% YoY in Grey Districts.
Regional accommodation sees fewer guests and shorter stays
Accommodation performance in the region was weak in May, with guest nights down -6% YoY and occupancy falling -1%pt, despite a -5% YoY drop in available stay units. The decline in guest nights was due to fewer guest arrivals (-5% YoY) and a slight reduction in average stay length (-1% YoY). International guest nights (-8% YoY) declined more sharply than domestic (-4% YoY). Short-term rental occupancy also dropped (-2%pt YoY).
International visitors stay longer, domestic nights drop
Large motels and apartments (20+ units) saw strong guest night growth (+21% YoY), driven by a +21% YoY increase in average nights per guest, while arrivals remained steady. This reflects a notable shift in market mix, with international guest nights surging +91% YoY and domestic guest nights falling -14% YoY, indicating longer stays by international visitors.
Most districts see accommodation decline, Buller's arrivals overshadowed by shorter stays
Across all districts, guest nights declined, though Buller saw a slight increase in arrivals (+1% YoY), offset by shorter stays (-2% YoY). In Buller and Westland districts, international guest nights declined faster than domestic, while in Grey, both markets declined equally (-15% YoY).
Tourism jobs stable overall, with Westland growth offsetting Buller decline
Tourism-related employment remained stable at 0% YoY, consistent with the national average. Westland District grew slightly (+1% YoY), offsetting a -2% YoY decline in Buller.
Employment changes reflect service gains, transport declines region-wide
Key tourism-related employment industry sector growth in Westland included travel and tour services (+13% YoY) and food and beverage (+8% YoY). In Buller, food and beverage services grew (+6% YoY), but were countered by declines in transport (-14% YoY) and activity services (-7% YoY). Grey District remained mostly stable, except for a -4% YoY drop in food and beverage employment.