It could be the last of the golden summers, with tourism operators likely to increase prices in 2009-10 because of the rise in fuel prices.
The tourism market had little choice, Tourism Industry Association acting chief executive Oscar Nathan said.
"There isn't too much benefit by being locked in a price freeze," he said.
Setting prices two years in advance for the wholesale market, domestic tourism operators are likely to pass on increases in fuel costs to consumers from October 2009.
Domestic operators, like airlines and other fuel intensive businesses, are having to grapple with the issue of rising fuel prices and the cost effects on their businesses, Tourism New Zealand acting chief executive Tim Hunter said.
"While this is a global issue, some operators will clearly be concerned that large price rises will have the effect of eroding demand. It remains to be seen how far New Zealand tourism operators can push prices before markets respond negatively. It will be some months before we see whether this is a problem for New Zealand."
Real Journeys chief executive Dave Hawkey said rising fuel costs were having a "huge impact" on the tourism industry.
Setting prices 12 to 18 months in advance, the company reviewed prices annually and it was inevitable price rises would have to be passed on, he said. Operators had to careful to achieve the right price as "there is a price threshold in every market".
Five years ago, Monarch Wildlife Cruises and Tours owner-operator Jenny Milburn was paying 50c a litre for diesel The cost was now almost $2 a litre.
"We seem to get an email every second day from our supplier saying diesel has gone up again," she said.
Monarch contemplated introducing a fuel charge this year to help alleviate the impact of rising diesel prices, but decided it would not be good business.
"This is the nature of tourism. You have to take the good times with the bad."
Ticket prices to Larnach Castle increased by 20% in 2007 and a further increase would be a few years away, spokeswoman Deborah Price said.
"We feel that after the last increase we may have to hold them for a while; at least until 2010," she said.
Destination Queenstown chief executive Dave Kennedy said operators would have to maintain their prices until current contracts with wholesalers ended. For many, this would be at the end of 2009, and an increase was likely to have an "impact on the market".
While there would be some resistance from operators to lifting prices, for some Dunedin operators it might be a good option, Tourism Dunedin acting chief executive Hamish Saxton said.
"Most of our attractions are reasonably priced. They have room to be increased. But operators cannot keep on changing their prices every time there is a blip."
The man behind a campaign urging New Zealanders to explore the country, AA tourism services general manager Peter Blackwell, said people should not be put off having a holiday just because prices were more expensive.
"New Zealand is still a cheaper option than heading overseas," he said.
Tourism facts :
• World's fastest growing industry
• Forecast annual growth is 4% (on average) for next five years
• Domestic tourism contributes $10.3 billion to the economy each year
• Tourism employs 10% of workforce
• Tourism represents 8.9% of GDP ($12.8 billion)
