Ready for take-off: Affordable airfares and strong demand have boosted industry revenue growth

The Tourism industry includes all expenditure by local and foreign tourists within New Zealand. Industry players provide a diverse number of services for travellers, including accommodation, transport, hospitality, retail, entertainment and cultural activities. New Zealand's diverse landscape, which includes populous cities, geothermal activity and Maori culture on the North Island, and has a scenic and adventure focus on the South Island, caters to a range of tourists.International demand for New Zealand tourism has rapidly expanded over the past five years. Visitors from China, Germany, the United States and the United Kingdom often stay for long periods of time, with a high average more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24
Market Share of Companies

Industry Threats & Opportunities

  • International demand for New Zealand tourism has rapidly expanded over the past five years
  • Cheaper airfares have bolstered demand from foreign tourists over the past five years
  • Industry participation is projected to grow further over the next five years
  • Industry Report - Industry Investment Chapter

    The Tourism industry is moderately capital-intensive. For every dollar spent on capital, an estimated $3.59 is spent on wages. Industry players provide a broad range of services with varying degrees of capital intensity. Transport providers, such as airlines, rail transport operators, car rental companies and scenic tour operators are required to invest in vehicle fleets to provide core services for customers. Accommodation providers, such as owners of hotels, hostels, motels and resorts, also need to invest in and upgrade their infrastructure. These players typically have higher capital requirements than service-focused companies, such as operators of cafes, restaurants, bars and clubs. Tourism is a significant employer across New Zealand. Air...purchase to read more.

    Additional Insights for the Tourism Industry

    IBISWorld has determined the most important Key Success Factors for the Tourism are:

  • Proximity to key markets
  • Access to multiskilled and flexible workforce
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as International travel to New Zealand and Domestic tourist visitor days in the Tourism industry impact industry performance..

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    What's in this report

    What is the Tourism in New Zealand Industry?

    Industry players provide tourism services for local and foreign travellers on short-term trips of less than one year. This includes people travelling for work, leisure or personal reasons. The industry’s services are broad, encompassing transport, accommodation, hospitality, recreation and retail services.

    Industry Products
  • Transport
  • Accommodation
  • Retail
  • Recreation
  • Hospitality
  • Industry Activities
  • Air passenger transport services
  • Road, rail and water passenger transport services
  • Accommodation services
  • Cafe and restaurant operation
  • Pub, club and bar operation
  • Motor vehicle leasing
  • Tour operation
  • Travel agency services
  • Arts, recreation and cultural services
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • International travel to New Zealand
  • Domestic tourist visitor days
  • Trade-weighted index
  • Business tourist visitor days
  • Consumer sentiment index

  • Current Performance
  • Industry structure
  • International demand
  • Domestic demand and key destinations
  • Chart: Revenue Growth

  • Industry Outlook
  • International tourism forecasts
  • Infrastructure investment
  • Domestic conditions and industry participation
  • Table: Tourism Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Tourism Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers in New Zealand

  • Key Selling Industries
  • Airlines in New Zealand
  • Art Galleries and Museum Operation in New Zealand
  • Cafes and Restaurants in New Zealand
  • Hotels and Resorts in New Zealand
  • Performing Arts Operation in New Zealand
  • Sports and Recreation Facilities Operation in New Zealand

  • Products & Services
  • Retail
  • Transport
  • Hospitality
  • Accommodation
  • Other
  • Recreation
  • Chart: Tourism Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Domestic households
  • International travellers
  • Domestic businesses
  • Chart: Major Market Segmentation for the Tourism Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Rent
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Tourism

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Tourism Industry

  • Industry Globalization
    Air New Zealand Limited,
  • Table: Air New Zealand Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Tourism Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Tourism Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Inbound Tourism
  • The act of a non-resident visiting a country, which in this case is New Zealand.
  • Outbound Tourism
  • The act of a resident visiting another country.
  • Tourism New Zealand
  • A government entity that markets New Zealand as a tourist destination.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Tourism in New Zealand market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Tourism in New Zealand:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Tourism in New Zealand market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Tourism in New Zealand, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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