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Around 20% of the annual spending that Kiwis would have put towards an overseas trips has gone to domestic tourism since borders shut in March 2020.

The survey by former Bank of New Zealand chief economist Tony Alexander showed that of the $10bn spent each year on overseas travel, around $2bn likely went to domestic tourism operators in any given 12 month period during the pandemic.

The number one use for unspent overseas travel funds was home renovations, maintenance and improvements, which people would otherwise not have done, at 26%.

Domestic travel was the second largest category at 20% and the third largest was savings at 18%, although Alexander said that many respondents indicated they were keeping the funds in their bank accounts for offshore travel when borders re-opened.

“A number in fact have noted intentions to stay longer overseas than previously planned,” he said. Others said they would increase the frequency of their overseas trips in future.

Source: Tony Alexander

Other categories included buying a new car or motorbike at 12%, or debt reduction at 11%. Less than 10% of unspent overseas travel funds went on new furniture, shares and other investments such as managed funds or cryptocurrency, residential property, or helping children buy a home.

Eating out received 3.1% of diverted overseas travel spend.

Other leisure related categories included spending on sports goods such as gym equipment and bicycles at 4%, buying a boat at 1.7%, and buying a caravan or motorhome at 1.4%.

Alexander said that if all the categories related to investment and savings were put together, the total would come to just over 47% suggesting considerable restraint on the part of consumers.

The independent economic commentator’s special survey had 1,586 responses from regions around New Zealand.

Read Tony Alexander’s latest survey here.

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The vast majority flocked to the regions over the two weeks from 4-19 July, said Tourism New Zealand.

A report from Stats NZ’s Data Ventures commissioned by TNZ showed the number of Kiwis outside of their home region peaked at 550,000 on 11 July.

Kaikoura had the biggest increase with 5050 domestic visitors, up 56.2% on the same holiday period last year. The destination was followed by the West Coast with 14,890 domestic visitors, up 50.7%, Fiordland with 1670, up 46.5%, and Marlborough with 11,620, up 43.9%.

René de Monchy

Queenstown, which had been hit hard by the border closure, saw domestic visitors up 43.2% to 22,300

“The increase in travel provided a much-needed boost to communities across the country,” TNZ’s director of commercial, René de Monchy, said.

“We’ll build on the school holiday momentum by tapping into the 64% of New Zealanders planning to take a domestic holiday in the next 12 months, and the 40% who intend to travel outside the school holidays.”

The regions that attracted the largest number of domestic visitors were Auckland with 79,160 visitors, up 6% – the lowest growth reported for any region – followed by Canterbury with 40,780 visitors, up 23%, and Central Otago with 18,470 visitors, up 36%.

Fiordland has the lowest number of domestic visitors with 1670, albeit up 46.5% on last year, followed by Clutha with 6380, up 21.5% on last year, and Gisborne with 7310, up 24.8%.

Data Ventures executive director Drew Broadley said the data showed Kiwis did more than just head to the ski fileds over the winter break, they ventured to all parts of the country. Every region recorded an increase in domestic visitors compared with the same holiday period last year.

“A large number of Kiwis have chosen to explore their own backyard, with many trying something new this winter when they would have traditionally been able to take a tropical overseas holiday,” Broadley said.

The data followed reports of a strong holiday period for many of the country’s attractions and accommodation providers and Development West Coast’s regional tourism manager, Jim Little, said the figures confirmed anecdotal feedback.

“Having recently been to Karamea, Charleston, Westport, Reefton and Franz Josef the feedback has been that many operators have experience one of the best winter holidays on record,” Little said.

“However, we expect it to slow down until the next school holidays, but Development West Coast has a major campaign planned to stimulate demand.”

Local campaigns from regional tourism organisations were running in tandem with TNZ’s current winter promotion, which was in market under the Do Something New, New Zealand banner. The campaign encouraged Kiwis to head to the ski regions to try something new this winter and would be live until the end of August.

Before Covid-19, tourism was a $40.9bn sector with domestic tourism making up 60% of this. New Zealanders also previously spent $9bn on overseas travel per year.

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