Data just released from the tourism sectors Tourism Industry Monitor shows that industry confidence levels are holding across the New Zealand tourism industry.
Ministry of Tourism General Manager, Ray Salter, said that it was encouraging to see confidence levels were steady and not trending downwards
Now that the monitor is in its third month we can begin tracking the mood of the industry over time - and that mood is looking quite stable. From the 100 point base on the confidence index for the March data, the index is now measuring 98 in May.
The main factor limiting the performance of businesses was the lower levels of demand across the sector, with 80 per cent of respondents citing this as a limiting factor.
The survey was conducted in the week commencing 4 May with close to 900 industry responses received. Confidence does not appear to have been affected despite businesses being surveyed in a week that saw Influenza A (H1N1) making headlines.
Tourism New Zealand chief executive George Hickton said businesses had been experienced variations in the affect of the downturn on international arrivals but the extent of the impact depended on market mix, as some long-haul markets had performed better than others.
We know that businesses are adapting to the change in circumstances a downturn brings. Tourism New Zealand is turning its attention to the upcoming high season booking period to try and drive interest for the critical summer months, Mr Hickton added.
Tourism Industry Association Chief Executive Tim Cossar said it is pleasing to see that the majority of tourism operators are performing in line with or above expectations which indicates that they are adjusting to the new trading conditions.
Were also pleased that this months survey now includes regional data as this will help operators get a much better idea of how demand is tracking at a regional level. Having this information at a broad industry level is a major advantage for a dynamic industry that is likely to be at the leading edge of economic growth in New Zealand.