Summary:
Data for September 2024, marking the start of Spring, presented a mixed outlook for the West Coast’s tourism sector. Compared to September 2023 (YoY), visitor card spending and accommodation occupancy rates showed declines. Tourism-related employment exhibited growth.
International visitor card spending declined by -6% YoY, and international guest nights fell by -10% YoY. Domestic card spending, on the other hand, dropped slightly more than domestic guest nights, with decreases of -9% and -4% YoY, respectively.
Among the top five domestic markets, visitors from the wider West Coast ranked as the second-largest contributor to domestic card spending. Despite an -8% YoY decline in their spending, notable growth appeared in specific categories: ‘Recreation’ products increased by +47% YoY, ‘Other Tourism’ by +21% YoY, and ‘Transport’ by +17% YoY.
Internationally, visitor spending saw the strongest growth in ‘Transport’ (+13% YoY) and ‘Other Tourism’ (+9% YoY) products. Within the top four international markets, the US and ‘Rest of Europe’ (excluding the UK and Germany) showed significant growth, with card spending up by +14% and +20% YoY, respectively. However, spending by Australian and UK visitors decreased by -14% and -31% YoY.
For the year ending September 2024, Buller District led in growth for both domestic (+9% YoY) and international (+28% YoY) visitor card spending. Buller District was also the only district to see a YoY increase in guest nights (+7%), while Grey and Westland Districts saw declines but reported increased active establishments (+7% and +1% YoY, respectively).
Occupancy rates remained relatively low this month, with commercial accommodations at 27% and short-term rentals at 46%, reflecting YoY declines of -2%pt and -6%pt, yet outperforming national averages in these metrics. The decline in commercial occupancy rates stemmed from a -7% YoY drop in guest nights, somewhat mitigated by a -4% decrease in available stay units. This reduction in guest nights aligns with trends across Central South Island RTOs.
Employment in select tourism-related industries grew by +3% YoY, led by increases in filled jobs within the ‘Transport Services’ (+7% YoY) and ‘Accommodation and Food & Beverage Services’ (+3% YoY) industries.
Short-term rental occupancy rates stayed steady through the month, with slight upticks during weekends and a peak occupancy of 63% on the 28th, coinciding with the start of the school holidays.