The number of international visitor nights spent in the city dropped 4.2%, to 363,020, in the year to December, compared with 2007, while commercial visitor nights dropped 1.2% in the same period.
The figures were included in Tourism Dunedin's half-yearly report to the Dunedin City Council's economic development committee yesterday.
There was some good news, with a 1% increase in domestic visitor nights in Dunedin, up to 527,580.
However, Ministry of Tourism predictions of a further 1.9% increase in domestic visitor nights for the city came with a note of caution about their reliability, given uncertain economic times, the Tourism Dunedin report noted.
"Based on the current economic environment it is likely . . . forecasts will overstate the actual level of tourism activity in New Zealand."
And, speaking to the committee yesterday, Tourism Dunedin chairman Murray Walker said new long-term forecasts by the Bank of New Zealand, which included the tourism industry, beyond this summer season were "not looking good at all".
"We have got no idea, really, what's going to happen in 12 to 24 months," Tourism Dunedin chief executive Hamish Saxton elaborated.
To overcome the difficulties, it remained vital to continue investing in the marketing of Dunedin's brand domestically and in Australia, Mr Walker said.
A new domestic marketing campaign was expected to be launched soon, aimed at revitalising the city's profile, once a response was received from potential industry partners, Mr Saxton said in his report.
