Tourist cash offsets dairy downturn

Tourism leaping ahead . . . a snowboarding competition at Cardrona last season. PHOTO: STEPHEN...
Tourism leaping ahead . . . a snowboarding competition at Cardrona last season. PHOTO: STEPHEN JAQUIERY
New Zealand's tourism boom continues unabated - hitting a record 193,600 in May - with Chinese visitors outnumbering Australians for only the second time in the past 15 months.

Tourism receipts continue to offset the dairy sector woes, with final dairy payouts and new season forecasts dragging billions from the economy.

For the full year to May, visitor arrivals were up 11% to hit a record total of 3.29 million, compared with the full year to May 2015.

Statistics New Zealand statistics manager Jo-Anne Skinner said holiday visitor arrivals from China exceeded those from Australia in May.

‘‘This is only the second time this has ever happened. The first was in February 2015,'' she said.

Visitors from China in May were 22,200 while there were 20,200 from Australia.

ASB economist Daniel Snowden said tourism was continuing to outperform on an annual basis, providing a boost to New Zealand exports and acting as a buffer to the economy, at a time when the dairy sector was struggling.

‘‘China's burgeoning middle class is boosting the pool of potential tourists,'' he said.

The increased numbers of holidaymakers from the US and Australia also contributed to the sector's growth, Mr Snowden said.

Westpac's chief economist Dominick Stephens said while the seasonally adjusted short-term visitor arrivals were flat compared with April, this was up 10% compared with a year ago and continued to reflect ‘‘a very strong tourism sector''.

● New Zealand residents took a record 2.45 million overseas trips in the year to May, up 5% from a year ago, with more trips to Australia, Fiji, and the United Kingdom.

simon.hartley@odt.co.nz

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