November 23rd, 2024

New Zealand households shift spending towards domestic travel amid global changes

The statistics reveal a dynamic shift, with a 7.5 percent increase in the total number of trips taken by households over the four-year period.

The statistics reveal a dynamic shift, with a 7.5 percent increase in the total number of trips taken by households over the four-year period. Notably, domestic travel has surged, with a 29.7 percent increase in domestic trips.
The statistics reveal a dynamic shift, with a 7.5 percent increase in the total number of trips taken by households over the four-year period. Notably, domestic travel has surged, with a 29.7 percent increase in domestic trips.

The big picture: In light of the challenges presented by the COVID-19 pandemic, increased living costs, extreme weather, and global events, New Zealand households have notably shifted their spending patterns, particularly in the realm of travel. This insight comes from the latest data released by Stats NZ, highlighting the evolving nature of household expenditure between June 2019 and June 2023.

Zoom in: Victoria Treliving, the senior manager for wealth and poverty statistics at Stats NZ, pointed out that the observed changes in spending on travel may be attributed to the series of global and local challenges faced since 2019. The statistics reveal a dynamic shift, with a 7.5 percent increase in the total number of trips taken by households over the four-year period. Notably, domestic travel has surged, with a 29.7 percent increase in domestic trips. Conversely, international trips have fallen by 32.5 percent.

Details: The expenditure patterns reflect these changes in travel preferences:

  • Spending on domestic flights nearly doubled, reaching $505.80 annually.

  • International travel spending remained largely unchanged.

  • Expenditure on domestic accommodation services rose by 45.5 percent to $599.60, marking the highest annual expenditure since records began in 2007. Within this category, spending on private accommodations, such as Airbnb, soared by 153.3 percent.

  • Meanwhile, spending on overseas accommodation prepaid in Aotearoa New Zealand plummeted by 53.4 percent to $537.00.

What they're saying: "While spending on domestic accommodation services has reached its highest annual expenditure since this series began in 2007, spending on overseas accommodation has more than halved since 2019," Treliving highlighted. This shift underscores a significant change in how New Zealanders are choosing to allocate their travel budgets amidst ongoing global uncertainties.

The bottom line: The pandemic and other global factors have led to a pronounced shift in New Zealand households' travel spending, with a clear preference for domestic over international travel. As the world continues to navigate the aftermath of the pandemic and other global challenges, these spending patterns may continue to evolve, reflecting the changing priorities and circumstances of households.