Summary:
Spending dips and occupancy falters, but West Coast tourism jobs rise
March ’25 was a mixed month for tourism on the West Coast, with modest declines in both domestic and international card spend as well as commercial accommodation occupancy rates. However, the number of filled jobs in tourism-related industries grew slightly, outperforming the national average.
Rising domestic spend indicates shifting traveler habits
Domestic card spend declined slightly at -4% YoY—less than the national average—while domestic guest nights fell more sharply by -16% YoY. This suggests a rise in average spend per visitor, as an increase in day trip visitation appears unlikely given a -10% YoY drop in domestic card spend on fuel. Supporting this interpretation is the strong growth in domestic guest nights in lodges and boutique accommodation, indicating a higher-spending visitor mix. Conversely, in the international market, card spend declined by -6% YoY, slightly outpacing the -3% YoY drop in guest nights. This points to either decreased average spending or longer stays among international visitors.
Domestic spend dips, accommodation up, among internationals transport on the rise
Within domestic spending categories, card spend on retail fuel (-10% YoY), F&B serving (-8% YoY), and retail other (-11% YoY) saw notable declines, while spend on accommodation products increased by +6% YoY. For international visitors, the strongest growth was observed in transport-related products (+20% YoY), including coaches, cruises, and scenic flights.
Domestic card spend: Canterbury dips, Tasman and Auckland climb
Regionally, domestic card spend by visitors from Canterbury decreased by -5% YoY, while spend from Tasman rose significantly by +12% YoY. Auckland also showed a modest +3% YoY increase.
US remains top source, Aussie spending sees notable dip
The US market remained the top international source, despite slowing growth to just +1% YoY, as card spend from Australia declined markedly by -12% YoY.
Buller sees spend growth while Westland faces international dip
Year-ending card spend data revealed that Buller District recorded the strongest growth, with domestic spend up +2% YoY and international spend up +8% YoY. In contrast, the Westland District saw a -5% YoY decline in international spend, primarily due to a -23% YoY drop in accommodation spend.
Overseas visitor spending sees notable drop across key markets
This trend was reflected across several international markets in Westland, with notable declines in year-ending card spend from Australia (-15% YoY), the UK (-20% YoY), and Germany (-13% YoY).
Occupancy falls -4% with fewer domestic guest nights
Commercial accommodation occupancy rates dropped by -4%pt YoY, driven by a significant -9% YoY decrease in total guest nights—mainly due to domestic declines.
Lodges and boutique stays grow, motels shift to international
All accommodation types experienced a drop in guest nights, except for lodges and boutique accommodations, which grew by +23% YoY—driven predominantly by domestic visitors (+42% YoY). However, occupancy rates remained stable in this segment due to a comparable +21% YoY increase in supply (available stay units).
Buller sees steep drop, domestic nights dip in Westland, Grey
Large motels experienced a notable shift in visitor mix: domestic guest nights fell by -28% YoY, while international guest nights rose by +26% YoY. Additionally, the average stay length for large motels increased by +24% YoY, indicating that international visitors are spending more time on the Coast.
Tourism jobs see moderate growth across Grey and Buller
At the district level, Buller experienced the most severe drop in guest nights (-19% YoY). In Westland and Grey, international guest nights remained stable, but domestic guest nights declined by -12% YoY and -15% YoY, respectively.
Buller sees strong gains in food and beverage, accommodation
Tourism employment across the region increased by +2% YoY, with growth reflected in both Grey (+1% YoY) and Buller (+6% YoY) Districts. Buller, in particular, saw strong performance in its two largest tourism-related sectors: Food and Beverage (+12% YoY) and Accommodation (+17% YoY).