No quake-related cancellations in Southern tourism

The tourism industry in Otago-Southland was not experiencing any cancellations as a result of the earthquake on Monday, Otago-Southland Employers' Association chief executive Virginia Nicholls said yesterday.

Virginia Nicholls.

There might be opportunities for tourists to change their plans and visit the region, but they would need to check availability, as bookings were strong as the region headed into the summer season.

''It is too early to say if the earthquake will reduce the number of tourists considering New Zealand as a holiday destination in the coming year,'' she said.

The 7.5 magnitude quake, which hit near Hanmer Springs at 12.02am, has blocked off Kaikoura, leaving about 1000 visitors stranded.

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Mrs Nicholls was responding to questions from the Otago Daily Times following the delayed release of the BNZ-BusinessNZ Performance in Services Index which showed Otago-Southland services industries in good shape.

The index had expanded to 63 points in October, an increase of 5.9 points from September and up eight points on October last year.

Tourism attractions in the region had good numbers of tourists visiting during the month, she said.

A reading above 50 indicates an expansion with the higher the number, the stronger the expansion.

Otago-Southland had the highest reading in New Zealand followed by central on 60.5, northern on 57.4 and Canterbury-Westland on 52.9.

The New Zealand seasonally adjusted reading of 56.3 was up 2.1 points.

In Otago-Southland, the activity/sales levels at 76.9 and orders/new business at 73.1, were the highest levels for eight months. Stock/inventories were a ''respectable'' 54.5 and employment levels and supplier deliveries were at 50.

Construction projects in Dunedin were under way and service providers were busy.

However, there continued to be some skilled staff shortages, such as in the painting and decorating trade, which was reducing the work those firms could take on, Mrs Nicholls said.

The retail trade had a lacklustre month which could be due to increased expenditure in the hospitality industry.

BNZ senior economist Doug Steel said the PSI indicated above trend economic growth was continuing in New Zealand.

Strong results across the distribution sector was more evidence of buoyant domestic spending and a booming tourism industry.