Tourism produced a direct contribution to GDP of $16.4 billion, or 5.5 percent, and an indirect contribution of $11.3 billion, or 3.8 percent of total GDP in New Zealand.
In 2019, how much money did New Zealand make from tourism?
Tourists generated $3.8 billion in goods and services tax (GST) income, with international tourists accounting for $1.8 billion. The number of international visitors to New Zealand increased by 1.3 percent. The domestic and foreign tourist spending figures have both been revised in the 2019 tourism satellite account.
What is New Zealand’s largest source of revenue?
Agriculture is the most important industry in New Zealand. Overall, it accounts for 70% of NZ’s merchandise export profits and 12% of the country’s GDP. As you travel past endless sheep and cow fields, you can see why New Zealand is the world’s greatest exporter of dairy and sheep meat. Horticulture is a subindustry that covers 121,000ha in New Zealand. The industry is valued $5 billion in New Zealand, including local and foreign sales of wine, kiwifruit, and summer fruits. It also has seasonal jobs that are ideal for travelers.
Jobs in New Zealand’s Agriculture Industry
In some areas of the agriculture industry, there is a labor shortage. It will be easier to obtain a work visa in New Zealand if you have experience in the following fields: beekeeping, dairy, cattle, pig farming, logging operations, agricultural science, animal science, biotechnology science, and viticulture.
WWOOFing is a fantastic method for travelers to gain farming experience. You may observe how a New Zealand farm operates while also receiving free lodging and meals.
- Assistant on the farm (this could include anything from milking to lamb tail docking).
Working a Fruit Picking Job in New Zealand shows you what it’s like to work in horticulture.
How much money did tourism cost New Zealand?
The only bright spot in the report, he claimed, was a 2.6 percent increase in domestic tourism spending compared to pre-pandemic levels.
However, he claimed, this did nothing to overcome a 91.5 percent drop in international visitor spending to just $1.5 billion, compared to $17.5 billion pre-pandemic.
He stated that because a few international visitors and students were still in New Zealand during the early months of the pandemic, the numbers were likely to have plummeted considerably more this year.
In the year to March, total foreign and domestic tourism spending was $26.1 billion, down 37.3 percent from the previous year.
He claimed that the New Zealand economy had lost $15.6 billion in only one year, including $1.7 billion in GST to the government from international visitors.
“The tourism industry was the first to be hit by the pandemic and will be the last to recover.”
Key Provisional Estimates
Note: The impact of COVID-19 in New Zealand between April 2020 and March 2021 was incorporated in the yearly estimates for 2021. The ‘Tourism satellite account: Year ended March 2022,’ which will be released in December 2022, will reveal the extent of COVID-19’s impact beyond this time period.
- The overall amount spent on tourism was $26.1 billion, down 37.3 percent ($15.6 billion) from the previous year.
- International tourism spending fell by 91.5 percent to $1.5 billion, a loss of $16.2 billion:
- International student spending (less than 12 months of education) was $78 million, down 98.1 percent ($4.1 billion).
- The overall contribution of foreign tourism to New Zealand’s total exports of goods and services plummeted to 2.1 percent from 20.0 percent, a 17.9 percentage point drop.
- International travelers generated $165 million in GST, a $1.7 billion drop.
- The number of international visitors to New Zealand fell by 98.6% (3.6 million arrivals) to 52,690.
- Domestic tourism spending climbed by 2.6 percent to $24.6 billion ($622 million):
- Tourism contributed $8.5 billion to GDP directly, or 2.9 percent of GDP, down 47.5 percent ($7.7 billion), or 2.6 percentage points.
- Tourism-related industries contributed an additional $5.8 billion in indirect value added, or 1.9 percent of GDP.
- The number of individuals directly working in tourism was 146,295 down 33.1 percent (72,285 people) from the previous year:
- The number of tourist workers fell by 34.2 percent to 126,204. (65,550)
- The number of tourist working proprietors fell by 25.1 percent to 20,091. (6,738)
- Direct tourist employment accounted for 5.2 percent of total employment in New Zealand, a reduction of 2.7 percentage points from the previous year.
Interpretation of data
- Due to the COVID-19 border limitations, there were a tiny number of visitors who fulfilled the description of a tourist and arrived in March 2021. As a result, practically all international tourism expenditure for the year was lost.
- The tiny number of tourists coming here for education has resulted in an even bigger drop in foreign student spending (studying for less than 12 months). This differs from the balance of payments calculation of education exports, which includes all overseas students regardless of length.
- Both Managed Isolation and Quarantine (MIQ) and the employment of traditional lodging providers for emergency housing, especially during lockdowns, had an impact on accommodation spending in March 2021. The great majority of MIQ spending is not for tourism, but rather for returning New Zealand residents, and is thus excluded from the accommodation spending estimates.
The Sustainable Tourism Explorer (STE) has been updated with the new TSA data
TSA data is now available in the form of interactive graphs in the STE. You can customize the graphs, as well as download them and the accompanying data, in addition to visualizing the data. These figures may be accessed on the MBIE website’s economic resilience page and the employment from tourism page in the economic region.
What effect does tourism have on GDP?
Despite ever-increasing and unpredictable shocks ranging from terrorist attacks and political instability to health pandemics and natural disasters, Travel & Tourism remained resilient in 2016, contributing 3.1 percent direct GDP growth and sustaining 6 million net additional jobs in the industry. In 2016, travel and tourism created $7.6 trillion (10.2 percent of global GDP) and 292 million employment, or one out of every ten jobs in the world. The sector accounted for over 30% of total worldwide service exports and 6.6 percent of total global exports.
Methodology
The report provides statistics on 2016 performance as well as specific 10-year estimates on the sector’s potential for 185 nations and 26 regions throughout the world.
Is tourism New Zealand’s largest industry?
Tourism was New Zealand’s most important export industry, accounting for 20.1 percent of the country’s total exports. Tourism produced a direct contribution to GDP of $16.4 billion, or 5.5 percent, and an indirect contribution of $11.3 billion, or 3.8 percent of total GDP in New Zealand.
Is tourism New Zealand’s most important industry?
Some of the country’s most well-known natural sites, such as Milford Sound-Piopiotahi, will be modified to accommodate significantly fewer visitors. Milford Sound-Piopiotahi has attracted millions of visitors due to its spectacular slopes, quiet seas, and frolicking fur seals.
However, the website “It won’t be able to revert to its pre-Covid status,” Nash added. It was formerly under construction “870,000 annual tourists put “severe strain” on the infrastructure, as well as the place’s cultural and natural assets, according to Nash.
New Zealand’s economy is largely based on tourism. Tourism is the country’s largest export industry, accounting for roughly 20% of overall exports, according to Tourism Industry Aotearoa. Tourism spending accounts for a significant portion of the country’s overall economy, contributing for more than 5% of GDP and employing 13.6 percent of the workforce directly or indirectly.
New Zealand had been closed to all international tourists for the greater part of a year before the trans-Tasman bubble allowed quarantine-free travel with Australia in March. Nash has repeatedly stated that the government will attempt to transform the country’s tourism offering, focusing on attracting a smaller number of visitors “high-value” visitors, as well as attempting to alleviate the environmental and social burden that large numbers of international tourists impose on small towns.
“In March, Nash stated, “The reality is that we have a responsibility to take an intergenerational view of the role of tourism in New Zealand.” “It’s not possible to go back to the way things were.”
“Unsustainable tourism levels place far too much strain on towns and natural assets, which many have failed to bear.”
Nash laid up more specific plans for the government’s new strategy, including a $200 million package, more than half of which will go to struggling South Island municipalities impacted by the border closure. Large portions of the financing would be committed to helping businesses and communities break their reliance on international tourists, as well as encouraging certain firms to reopen when visitors return. The popular Queenstown Wanaka region will receive $20 million “to assist in the development of alternative businesses” Another $15 million would be allocated to the “To protect Milford Sound-Piopiotahi, transformation is required.”
“The loss of overseas visitors has an economic impact that extends beyond the tourism workforce and businesses,” Nash said on Thursday. “Communities across the South Island, particularly in five regions, are confronting new threats to their way of life.”
Simon Upton, the parliamentary commissioner for the environment, has proposed a departure tax for all overseas flights to help mitigate the environmental damage caused by tourism. The money raised estimated to be $400 million per year would be used to develop lower-emissions aviation and to mitigate the effects of the Pacific climate crisis.
How significant is tourism in New Zealand?
Tourism contributes significantly to the New Zealand economy by generating export money and providing job opportunities. Tourism expenditures covers all types of travelers, including international visitors, local residents, and corporate and government travelers.