September 17th, 2024
New Zealand's tourism industry is looking to bounce back following the devastating impact of the COVID-19 pandemic. With the latest data from Statistics New Zealand showing a steady increase in visitor arrivals, the industry is keen to contribute more to the country's economy and help boost GDP.
Pre-COVID, tourism directly contributed 5.6% of New Zealand's GDP, but that figure fell to 3.0% during the COVID period as the industry focused solely on domestic tourism. Now, with international visitors slowly returning, there is hope that the industry can recover the 2.6% of GDP that was lost.
Rebecca Ingram, Chief Executive of Tourism Industry Aotearoa (TIA), says there is real scope for tourism to play a crucial role in moving New Zealand's economy back into positive territory. "If we can do this, the future national GDP position will be stronger," she said.
However, the industry is facing a major challenge in the form of a workforce shortage. Many businesses are struggling to find enough staff, which is curtailing their offerings and limiting their ability to take full advantage of the recovery.
"A key first step is to remove the friction we see in the flow of skilled and valuable workers from overseas, and TIA wants to see this key constraint addressed so we can quickly realise gains for New Zealand as a whole," Ingram said.
TIA is calling on the government to take action to alleviate pressure on workforce recovery and remove roadblocks to the recovery of the diverse tourism industry. By boosting the workforce available to tourism businesses, they will be able to offer more experiences and extend their opening hours, which could significantly contribute to the industry's recovery.
Ingram also highlighted the importance of sustainability in tourism, saying that the industry must evolve to cater to new travel trends. "Sustainable tourism is not just a buzzword, it's critical for the long-term health of our industry and the communities in which we operate," she said.
The industry is cautiously optimistic about the future, as global vaccination efforts progress and travel restrictions continue to ease. While the recovery may not be uniform across all sectors of the industry, the continuous upward trend in visitor arrivals provides a positive outlook for the future.