Summary:
- January saw stagnant growth in the international market, with both visitor card spend and commercial guest nights remaining stable compared to Jan '24. However, domestic visitor activity was significant, likely somewhat influenced by the West Coast’s exceptional weather over the holiday period, contrasting with conditions across much of the rest of the country.
- International visitor card spend remained steady (+1% YoY), though shifts in market composition were evident. Card spend by Australian and UK visitors declined (-6% YoY and -15% YoY, respectively), offset by a +6% YoY increase in card spend by US visitors. The strongest growth in international visitor spending was observed in retail food & beverage (+13% YoY) and food & beverage serving (+9% YoY) products, with the latter continuing to account for a quarter of total international visitor card spend.
- The favorable weather appears to have drawn many Cantabrians to the West Coast, reflected in a +26% YoY increase in card spend from this market. Additionally, local travel activity was up, with West Coast residents spending +9% YoY within the region. The largest increases in card spend across both markets were recorded in retail fuel and accommodation, painting a picture of increased road trip activity along the coast.
- In line with the rise in domestic visitor card spend on accommodation, domestic guest nights in commercial accommodation increased by +16% YoY. This growth was largely driven by a +27% YoY increase in domestic guest nights at campgrounds & holiday parks, which accounted for approximately two-thirds of all domestic guest nights in Jan '25.
- While campground & holiday park occupancy rose significantly (+6%pt YoY), short-term rental occupancy declined by -9%pt, a notably sharper drop than the national average of -3%pt. It is important to note that the overall decrease in short-term rental occupancy is likely influenced by a significant data outage at the start of the month, a period when occupancy rates are typically higher. The percentage point changes should thus be only seen as a comparator to the national average.
- At the district level, Buller recorded the strongest growth in domestic guest nights (+27% YoY) but was also the only district to experience a decline in international guest nights (-14% YoY). Meanwhile, Grey District saw the largest increase in international guest nights (+19% YoY) and also recorded the strongest growth in total guest nights (+12% YoY), which, combined with a -5% YoY reduction in available stay units, resulted in a significant +8%pt increase in occupancy rates.
- Overall, employment in tourism-related industries remained stable, though notable shifts occurred at the district level. Significant job growth was observed in Buller (+11% YoY), while employment declined in Grey (-4% YoY) and Westland (-1% YoY). The decline in Grey was primarily driven by reductions in accommodation sector jobs (-13% YoY) and activity services (-8% YoY). Given this context, the strong rebound in accommodation demand in Grey District is particularly encouraging. In Buller, job growth was widespread across multiple industries, with accommodation sector employment increasing substantially (+23% YoY).