Transtasman Bubble: Tourism New Zealand Sees Billion Dollar Economic Boost

By RNZ

Welcoming Australians to Aotearoa could result in a billion dollar boost to our economy if a transtasman bubble opens in the coming weeks.

That’s the most recent forecast from Tourism New Zealand (TNZ) ahead of Tuesday’s planned opening date announcement.

TNZ Acting Executive Director Rene de Monchy said it would be very welcome news after a difficult year for tourism.

Before Covid-19, Australia was our largest foreign market, accounting for around 40 percent of international visitors.

That represented about $ 2.7 billion a year.

“And according to our model, if Australia opens in the next few weeks, it could be up to $ 1 billion and maybe even more to flow into our economy for the rest of this calendar year, so that’s great hope for the industry and allows them to plan for it, “De Monchy said.

On average, international visitors also spent twice as much as domestic travelers and three times as much per day as residents. Without international visitors, there is likely to be a $ 12.9 billion gap each year in visitor spending, he said.

TNZ has continued to promote New Zealand, but is preparing a new campaign to show Aotearoa as a destination.

“We think that visitors and tourism will probably take a little longer to restart and probably as we move into the June-July holiday period and into the October holiday period, this is when you will really see the visits begin. to increase, so we are aware of that as we think about our marketing plans in Australia, “said de Monchy.

“The key thing that we have been doing because we are not sure of the timing, we have been adjusting that plan for the last few months because there was a time when we thought this travel zone could happen in October and then come back at Christmas, so we have been continually adjusting that plan to context and we’ll be ready to go as soon as an announcement is made. “

As for where Australians would travel when the bubble opened, De Monchy said historically popular destinations were expected to remain so.

“You should see a lot of interest and we are already seeing it in Google search trends … in Queenstown.”

He expected Australian visitors to complement domestic travelers for the tourism industry as they traveled further afield and outside on weekends and holidays.

But there would be some competition to attract Australians, as other Australian states would seek to attract both domestic and New Zealand tourists, he said.

“It’s going to be a really unique competitive environment for the next several months as we are both each other’s captive audience.”

De Monchy said TNZ would continue to market both domestically and in Australia, and that there were more Australians to target than vice versa.

“The past year has been really good nationally, but it is not enough to fill the void left by international visitors.”

Increase in Australians booking holiday homes in New Zealand

New Zealand vacation home owners are already reporting a surge in Australian bookings in the run-up to the bubble date announcement.

Figures from Bachcare show a 117% increase in speculative bookings in the month prior to the announcement.

Spokesperson Zaina Razzaq said she showed marked interest in travelers researching and booking accommodation, despite no confirmation of a quarantine-free travel bubble.

The figures showed that beaches, food and wine were high on the list for Australian travelers, while in previous years the focus was on ski vacations, he said.

“What is coming to light in our research this year is a surprising lack of reserves in New Zealand ski fields such as Queenstown and Ohakune,” Razzaq said.

“At this time of year, we would normally see an influx of Australians booking their accommodation for a ski holiday in the dead of winter. Instead, reservations are concentrated around beaches and vineyards, and the feedback we receive indicates that a lot of people want to spend time to reconnect with family members living in New Zealand, many of whom have not been able to see for over a year. “

The top 10 locations for Australian reservations are Raglan, Tauranga, Waiheke, Marlborough, Mount Maunganui, Marlborough Sounds, Martinborough, Akaroa, Whangamatā, and Hanmer.

While Queenstown had fewer confirmed bookings than expected, Razzaq said it was the most popular search term, suggesting that many were researching and preparing for when the bubble was confirmed.

“What we think the data shows us is that Australians looking to travel here to ski in a specific seasonal time period are waiting for confirmation of the bubble opening before booking. By contrast, travelers who are more flexible in their travel periods they are to make reservations in regions well known for their wine production such as Waiheke, Marlborough and Martinborough or in coastal areas such as Raglan, Tauranga, Mt Maunganui, Akaroa and Whangamatā.

“The most common reason we hear from Australians booking through us is the desire to beat the rush before the peak season.”

– RNZ