Forward Outlook

Economic and Political Outlook

The general government deficit disappeared in 2007 and small surpluses are forecast in 2008-09. Inflation, as measured by the European Union’s harmonised index, increased to 3.1 per cent in May and (according to preliminary data) to 3.4 per cent in June. This is the result of high food and energy costs and in spite of still-moderate wage increases.

Tourism Outlook

Germany is expected to be relatively insulated from the global economic downturn and travel sellers are predicting stable growth.

However, medium-term growth in arrivals figures is likely to slow due to increased airfares attributed to the rising cost of fuel and strong competition from other long-haul destinations, including the US which remains very good value while the dollar remains low.

In the longer term it is expected that German speaking markets will remain at current growth levels due to a relatively stable economic situation and high interest in NZ. New Zealand remains an aspirational destination for German travellers - the challenge is to ensure they make the dream a reality.

Sources: Tourism New Zealand Regional Rap, www.economist.com (Country Briefing Germany)