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Market Trends

While India is an emerging market for Tourism New Zealand, it is a market that the organisation has been active in for some years. During this time Tourism New Zealand has built destination New Zealand's reputation in the market, with the country seen as very aspirational and exotic to Indian travellers.

Business Events remains a priority and the Indian incentive market promises the highest potential for New Zealand.


New Zealand is a popular destination among honeymooners and those seeking self-drive itineraries. Free Independent Travellers (FIT) currently make up around 60 per cent of New Zealand's Indian visitors and this sector is increasing more rapidly than group travel. Over half of Indian visitors (62 per cent) travel outside the main regions.

The Indian market has a strong Visiting Friends and Relatives (VFR) component (about 30 per cent of total visitors), while holiday visitors account for almost 50 per cent of arrivals. The vast majority of Indian holiday visitors will be visiting New Zealand for the first time and around three-quarters will combine their trip to New Zealand with another destination, e.g. 30 per cent visit Australia as well as New Zealand.


India is the fastest growing major economy worldwide. According to the International Monetary Fund, India’s gross domestic product (GDP) grew by 7.3% in 2015. India’s GDP is projected to grow between 7.5-7.7% from 2016 to 2020, outpacing China through this period.

Key Indicators

Exchange Rate vs NZD:  INR 48.46 = NZD 1 (October 2016)
Expected GDP Growth:  7.5 - 7.7% (average 2016-2020)

Data sources:
www.economist.com (GDP Growth)
www.xe.com (Exchange rates)

Outbound Travel

The World Tourism Organisation estimates about 50 million Indians will be taking overseas holidays each year by 2020, and outbound spending is expected to exceed US$28 billion. With approximately 65 million passport holders in the country who are potential travellers, the source market for outbound travel is wide and complex because of its size and variety.

According Bureau of Immigration, Govt. of India there were 20.38 million Indian national departures in 2015, an increase of 11.1% on the previous year.

Indian travellers remain at the luxury end of the market, helping keep spend and yield high in this market.

Airline Update

The Singapore Airlines and Air New Zealand partnership provides additional seat capacity and Air New Zealand is now able to sell directly to consumers in India post the approval of the Air Service Agreement.