Tourists are staying away from Dunedin as the impact of high fuel prices continues to bite, new figures show.
The total number of international and domestic visitors coming to Dunedin declined 3.5% in the year to the end of June 2008, figures in the latest Tourism Dunedin quarterly report show.
The report, presented to the Dunedin City Council's economic development committee this week, showed domestic visitor nights dropped 3.5% to 512,840 compared with the year to June 2007.
International visitor nights were down 3.5% to 368,730 compared with June 2007.
The number of visitors from Australia (up 1.9% to 64,904) and the United Kingdom (up 2.2% to 9785) improved, but other key international markets were in decline.
Visitors from China were down 24% (to 5054), Korea 17.6% (to 6042), the United States 12.4% (to 12,616), Japan 4.4% (to 7030) and Canada 3.5% (to 1577).
Tourism Dunedin chairman Murray Walker told the committee the figures reflected the downturn being experienced "in varying degrees" across New Zealand and globally.
The decline was fired by rising fuel prices and the flow-on impact the additional costs were having on travellers and the airline industry, he said.
"There are a lot of economic forces that are presenting . . . challenges to tourism in the world, and, certainly, New Zealand and Dunedin."
Dunedin needed to respond by continuing to push its brand in the key market of Australia, and through initiatives such as environmentally sustainable tourism, he said.
Councillors saw a preview of one initiative, viewing clips from Tourism New Zealand's latest Spring "What's On" advertisement - aimed at the Australian market - which included a segment on Dunedin's mix of wildlife, architecture and walks.