Easter, Otago Anniversary Day and school holidays combined with unseasonably fine autumn weather may have contributed to an improved performance in the services index for April.
However, Otago-Southland Employers Association acting chief executive, Diana Hudson, said it remained to be seen whether the momentum of a recovery could be sustained into winter.
The BNZ Capital and Business New Zealand index showed Otago rebounded from a significant fall in March (index reading 40.7) to 44.8 in April, the second highest figure in New Zealand.
Mrs Hudson said that compared favourably with the national value of 43.7.
The national value was the second lowest overall result, and showed that the sector continued to contract.
A reading above 50 shows an expansion in activity and below 50 a contraction.
Otago-Southland was the only region to record an overall increase for the period.
"The category breakdown showed a pleasing increase in activity-sales levels and orders-new business," Mrs Hudson said.
Bank of New Zealand markets economist Stephen Toplis said the tourism industry was of fundamental importance to the strength of the broader New Zealand services sector, given its reach across many different businesses.
The sector included transport, accommodation, restaurants and cafes, and the wider retail sector.
"Accordingly, the headwinds that tourism currently face are proving to be a substantial headache for the economy as a whole," Mr Toplis said.
