International Visitor Expenditure

Submitted by sylvia.wong@up… on Wed, 04/01/2020 - 14:39
customer purchasing items

Within this topic we explore the term expenditure and it’s significance. Read below to find out more.

Sub Topics

The term ‘expenditure’ refers to money spent by an individual, business or government for any purpose. Therefore, the ‘international visitor expenditure’ refers to money spent by an international visitor for any purpose while visiting New Zealand.

  International Visitor Expenditure (YE June 2019)  

Country

(Generating Market)

NZ$ (million) expenditure Average spend per visitor $
Total 11,190 million    
Australia 2,614 2,000
China 1,694 4,300
USA 1,375 4,200
UK 979 4,500
Germany 575 6,000
Canada 303 4,700
Japan 273 3,100
Korea, Republic of 249 3,100

queenstown area as viewed from the window of a plane

Let’s now summarise inbound tourism in New Zealand.  This will help you understand the significance of inbound tourism for New Zealand in terms of the international visitor arrivals and the expenditure.

International Arrivals

The total international arrivals for YE April 2019 was 3,891,255 which is an increase of 99,394 visitors compared with the previous year of 2018.

Generating Market

The largest generating market for YE June 2019 term of international visitor arrivals was Australia, they were also the largest generating market in terms of expenditure (by country) contributing $2.614 billion to the total expenditure received from tourism. 

Expenditure

The total expenditure by international visitors in 2019 was $11.190 billion.

Purpose of Travel

The main purpose of travel for international visitors coming to New Zealand was for a holiday, overall 52% of total international visitors came to New Zealand for this purpose. 

Reflection

Sometimes the visitor expenditure by market doesn’t always correspond with the number of visitor arrivals by market.

Let’s look at Germany who ranks 5th in terms of visitor arrivals and generated 102,481 visitors YE April 2019.  This is very close in numbers to Japan, who is positioned just below them at 5th place and generated 100,331 visitors, just 2,150 less. Yet look at the difference in the total visitor expenditure.

In the figures, it can be seen that Germany ranks higher than Japan in terms of expenditure:

  • A visitor from Germany spends more on average compared a visitor from Japan.
  • Visitors from Germany may stay in New Zealand for a longer duration than visitors from Japan, therefore spending more money overall.
  • Visitors from Germany may engage in more activities, or more expensive activities and spend more that way.
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