Industry survey shows tourism business sentiment

A survey of New Zealand’s tourism businesses has captured sentiment in the industry a year after the impacts of Covid-19 were first felt. The survey was conducted before recent news of quarantine free travel from Australia.

“While short-term confidence has fallen since the last survey, outlook for the next year is slightly more optimistic. I would expect that there will be even more optimism as we get closer to quarantine free travel from Australia,” says TNZ interim Chief Executive René de Monchy.

Results show that one of the main concerns for tourism business owners was lower customer numbers, showing that while New Zealanders are increasing their spend on tourism activities and visiting new places, their efforts are not enough to make up for a lack of international visitors.

“Tourism New Zealand alongside the regional tourism organisations continue to support the industry by encouraging visitation with the Do Something New New Zealand campaign, and offering business support and advice via Qualmark’s Tourism Advisory Support Programmes.”

The government have also undertaken a range of measures to support industry including the Tourism Transitions Programme, Regional Events Fund, STAPP and Department of Conservation concession waivers.

Topline results:

Industry Survey February 2021

  • A TNZ survey of 900 tourism businesses suggested summer was better than expected for a quarter of respondents, and 19% outperformed last summer.
  • However half said summer was worse than expected.
  • Half also said they would need to close this year if their situation did not improve.
  • Almost half of operators planned to retain the same staffing levels, with a smaller number intending to reduce staff levels or hibernate their business.
  • Industry outlook for the next six months is pessimistic, but improves slightly looking ahead 12 months.

Read the full results below.

As well as encouraging domestic visitation, Tourism New Zealand continues to build preference for New Zealand as a destination offshore in anticipation of borders reopening.