Summary:
November posed challenges for tourism on the West Coast, with significant declines in visitor card spending and accommodation use compared to Nov '23. Tourism-related employment metrics were slightly below the national average, reflecting the overall challenges faced by the region.
Visitor card spending and commercial accommodation use declined in the international market at similar rates (-17% and -18% YoY, respectively). However, in the domestic market, card spending (-4% YoY) significantly outperformed the decline in commercial accommodation use (guest nights: -12% YoY), suggesting increased average spending or a shift toward day trips. Supporting the latter is the fact that card spending by West Coasters themselves grew by +6% YoY, partially offsetting declines from Cantabrians (-7% YoY), Otago visitors (-14% YoY), and Aucklanders (-26% YoY).
Among the top six domestic markets by card spending volume, increases were seen from Tasman (+4% YoY), Nelson (+15% YoY), and Manawatū-Whanganui (+44% YoY). The latter was largely driven by a remarkable +218% YoY increase in retail fuel spending, suggesting a growing preference for extended road trips along the West Coast by this market.
International visitor card spending decreased across all major markets, except for smaller markets like Africa & Middle East (+47% YoY, $145K), Japan (+20% YoY, $32K), and Rest of Oceania (+174% YoY, $4K). Among the top five international markets, the US market showed the smallest decline (-13% YoY), while the UK market experienced the steepest drop (-29% YoY).
Occupancy rates declined significantly in both commercial accommodation (-7%pt YoY vs. -1%pt nationally) and short-term rentals (-9%pt YoY vs. -7%pt nationally). While the number of available stay units remained stable (-1% YoY), the drop in commercial accommodation demand (domestic guest nights: -12% YoY, international guest nights: -18% YoY) drove the decline. Guest arrivals dropped even more sharply (-22% YoY), though a +13% YoY increase in average stay length softened the overall decrease in guest nights to -16% YoY.
Accommodation preferences shifted notably. Among international visitors, demand declined for motels with more than 20 units (-29% YoY vs. -11% in the domestic market), motels with up to 20 units (-23% YoY vs. -1% in the domestic market), and holiday parks/campgrounds (-23% YoY vs. -5% in the domestic market). For domestic visitors, declines were pronounced for backpackers (-28% YoY vs. -13% for international visitors) and hotels (-35% YoY vs. -6% for international visitors).
At the territorial authority (TA) level, Buller district showed resilience in the short-term rental sector, with occupancy rates decreasing by just -6%pt. Commercial accommodation use declined the least in Grey district (guest nights: -6% YoY). Both markets contributed equally to declines in guest nights in Grey (-6% YoY) and Westland (-19% YoY), though international guest nights in Buller (-23% YoY) decreased more steeply than domestic guest nights (-4% YoY).
The highest daily occupancy rates in short-term rentals coincided with Canterbury Anniversary Day and the Ride the Wilderness event, reaching 88% in Grey, 80% in Buller, and 76% in Westland. Short-term rental occupancy rates increased steadily throughout the month, with the strongest growth observed in Westland.
Tourism-related employment declined slightly (-1% YoY), driven by job losses in Westland (-3% YoY) and Buller (-2% YoY), partially offset by a +1% YoY increase in Grey district. Job decreases in Buller were led by food and beverage services (-11% YoY) and recreation services (-9% YoY), while Westland saw reductions primarily in accommodation services (-8% YoY), reflecting the district’s declining accommodation statistics.