Comprehensive Analysis of Growth and Demand in New Zealand Tourism

This report provides a detailed analysis of the growth and demand factors influencing the tourism sector in New Zealand. It examines trends such as low fuel prices, government initiatives for sustainable tourism, and the impact of events like the 9/11 attacks. The report also analyzes international tourist arrivals, with a focus on key markets like Australia, China, and the United States, and discusses the economic contributions of both domestic and international tourism. Furthermore, it highlights significant regional contributors such as Auckland and Otago. The report also touches upon global tourism trends, including sustainable and food-centric tourism. Desklib offers a wealth of similar solved assignments and study resources for students.

Running head: Growth and Demand for Tourism
Growth and Demand for Tourism
Name of the student
Name of the University
Author note

1Growth and Demand for Tourism
Answer of Question 1:
The tourism industry of New Zealand hospitality sector is enhancing their business and a
wide range of cultural assimilation has happened in this process. Variety of hospitality
management and the experimental the view of flexible work culture is the key issue of the New
Zealand hospitality management. In 2015, 108,000 people are working in the hospitality sector in
New Zealand and most of the people; almost 54% have worked in cafes and restaurants
(Tourismnewzealand.com, 2018). The engagement of people with this kind of job and growth in
the market signifies the up gradation of business. In New Zealand, most of the business
hospitality related to Auckland and 38% of New Zealand hospitality sales happened in this
region.
1.a
There are three trends that have mentioned in this section and all trends are highlighting
the general issue in this aspect. The processes are important and relevant enough for the
sustainability in the business process in New Zealand. Their aspect of low fuel price is important
and that influences lower ticket range also. The Ministry for Primary Industries (MPI) is taking
care of this policy and that is the reasonable price range decrease situation is more valid and
essential. There will be an assumption that takes place in that account like a decrease in ticket
prices by $22 is estimated to increase visitors by between 11,460 and 56,190, an enhancement of
0.5%-2.4% passengers for the change in this process(Tourismnewzealand.com,2018). This is the
facilitator method process and that help to accumulate people for the development of the
business.

2Growth and Demand for Tourism
In case of motivation, the level of decision making and have a sustainable development
of the business is the key issue in that case. The environmental welfare is the main aspect of
sustainability and that is the key motivation for the New Zealand hospitality sectors. The trend
highlights the government initiations also in New Zealand and the proposed act of ‘Tourism New
Zealand is a Crown Agent governed by the Crown Entities Act 2004' established by the New
Zealand government(Tourismnewzealand.com, 2018). The motivation is the key aspect as they
develop the air connectivity, targeting the value, visitor experience, productivity and the insight
strategic drive of the nation and it helps in that process also.
The incident of 9/11 attacks, is the main concern of business reluctant factor. The entire
tourism department has got a threat in that situation and thus it can be considered as the
resistance factor of tourism in New Zealand.
1.b
In case of facilitator factor in business
 The process of airline low fare and low fuel cost help in the growth of tourism.
 The low-cost fare also provided the wide range of business and stretches the horizon of
business so that effective results can be expected.
In the case of motivator factor in business
 The sustainable condition of tourism is important for the passengers and that is the
reason people accumulation will become high and they can trust the nation for their
serviceability.

3Growth and Demand for Tourism
 Demand in the market is high and that impacted on the people and CSR approach to
environmental sustainability attract people to continue the endeavor to stay their
hospitality position in the global market.
In case of resistance factor, the incident of 9/11 is the liable matter of this and that also
affects the tourism.
 People are in fear and they think about the undesired consequences that may face in
airlines. At the initial stage, it was quite high and that threaten the airline business. Now
the situation is improving so as the security of airlines and that is the concern drawback
of this business.
 The attention of media and other news has a special interest on that and live footage of
these situations and people helplessness in that situation affect in the growth of the
airlines.
Answer of Question 2
2a.
494,193k total international arrivals are in 2016 in New Zealand. People had come in this
nation for a different occasion. Most of the visitors are from Australia and China
(Archive.stats.govt.nz, 2018).
The international recipient of 4% growth is the concern issue of the process. This is the major
situation that headed by Australia, China, USA, Germany and Japan (Tourismnewzealand.com,
2018).

4Growth and Demand for Tourism
There are some positives in like the first bilingual city of Rotorua, the community
development in improved quality, spending boost to Wellington, destination tourism place and,
socio-cultural advantages are the major highlighting aspect for the tourism business. In case of
drawback situation in the hospitality sector, flooding is the concern issue in this nation. Global
condition change in a rapid manner and that can change the planning for visitors as well.
After 10 years, the tourism business will improve, approximate 4.9 million international
arrivals is there and that surplus $15 billion by 2023 (Mbie.govt.nz, 2017).
2b.
Milford Sound in the south-west of New Zealand and this is the main inbound tourism
market, in which people went in numbers. The semantic beauty of the place is the major aspect
along with the towering peak, rainforest, waterfalls like Bowen falls and Stirling falls are the
major reason and that attract people (Archive.stats.govt.nz,2018). The Milford Discovery
Centre and the availability of Black Coral are the main attraction of place and people used to go
there for that reason.
Hooker Track is the main place that improved the scenario in 10 years and especially in
last 12 months. The increase of 35% is the crucial matter in this aspect and the numbers of
Mount Cook or Aoraki is the main factor that attracts people (Mbie.govt.nz, 2017).
2c.
The top four nations of international tourist arrival are France, United States, Spain and
China. The amount of receipts is $205.9 billion for the USA, $60.3 billion for Spain, $44.4
billion for China, and $42.5 billion for France (E-unwto.org, 2017).

5Growth and Demand for Tourism
France is the first nation in tourism and almost 37 sites are under the UNESCO World
Heritage list and that brings the cultural interest with the nation (Mbie.govt.nz, 2017). Quality
heritage is the issue that upgrades the tourism process of the nation. World‘s largest and
renowned museums Louvre, the most visited place are there and that changes the dimension of
the attraction of people.
2d.
China is the world best tourism market in the world. The expenditure of travelling has
crossed US$102 billion in 2012 and considered as the first source market in the global basis. The
major reason behind the issue is the relaxation of restriction and rapid urbanization policy of the
country (E-unwto.org, 2017). These two processes along with the rising disposable incomes and
the volume of international trips are a major concern the help in the source market for China.
The major factor that market mainly concern is the economic demand of the market area.
The utility process registered the fluctuation of demand. The level of income is also important in
that case.
The case of inflation and taxation are the main asset ad sales value of the country and that
is the reason it comes directly influences the prices and make a supply-demand relationship
also(Archive.stats.govt.nz,2018). The significance of the case is to make the relationship and
create a chain value with the market. This is the case that evolves the nature of market and drives
it towards the level of competency.
Answer of question 3
3a.

6Growth and Demand for Tourism
In accordance with the New Zealand Key Tourism Statistics, November 2017, the total
number of international arrivals was 3714551 which mark 7.6 % growth from the previous year.
in this regard, it must be mentioned the over the last ten years the growth of the tourism industry
has been consistent as the number of international arrivals was 3450629, 3089562, 2836774
2699762, 2564824, 2582935, 2520725, 2439252, 2453555, 2467461 in 2016, 2015, 2014, 2013,
2012, 2011, 2010, 2009, 2008 and 2007 respectively (Key tourism statistics | Ministry of
Business, Innovation and Employment, 2018).
The data from the New Zealand Key Tourism Statistics, November 2017 revealed the key
international visitor markets are United Kingdom, Australia, United States, China, Germany and
Japan. There are several reasons behind the countries are the key markets for New Zealand.
One of the main reasons is the strong economy of these markets which helps in
becoming the desired places for international tourism. Secondly, the third reason is the direct
airlines services and the increased rate of air capacity for which the tourists from these countries
are increasing rapidly making up the countries the key international visitor markets for New
Zealand (Key tourism statistics | Ministry of Business, Innovation and Employment, 2018).
Thirdly, the political condition of the country is stable and that made the comparatively one of
the safest destination than other countries where hesitation of tourist are observed due to political
unrest.
Among the all international markets, Australia is the largest market for New Zealand in
terms of international tourism fetching nearly half of the international tourists in the country. The
primary reason of being the largest international tourism market is its strong economy. Culturally
rich New Zealand attracts most of the Australian visitors during seasonal occasions. In addition

7Growth and Demand for Tourism
there are other factors such as being the neighbor country, Australia and New Zealand is well
connected via direct air services which enabled the Australian visitors to travel the country
easily.
3b
The total expenditure of in the domestic sector of the tourism industry has been recorded
as $21.4 Billion whereas the year of 2016 witnessed the expenditure of $20.6 Billion, similarly
$19.5 Billion and $18.2 Billion in 2015 and 2014 respectively. While domestic tourism sector of
the country contributes largely in the economy with $59 million per day the contribution of the
international tourism is $40 million every year. Therefore, there is a difference can be observed
between the contribution of the two sectors. Certain reasons like rules, regulations and long
process before travelling a foreign country discourage the international tourism while
encouraging the domestic tourism prospect (Key tourism statistics | Ministry of Business,
Innovation and Employment, 2018). Apart from that, the worldwide economic crisis in general
discouraged the international tourism across the world.
3c
The contribution of the regional tourism sector is significant inclusive of both the
international as well as the domestic front. Among the regions, Auckland witnesses most the
international and domestic tourists contributing 30% share in the economy. Similarly, the
contribution of Otago and Canterbury regions are also significant marking the 13% market share
individually in the tourism sector. Thus it can be observed that the Auckland and Otago are the
two main regions that observe most of the international tourism of the country (Key tourism
statistics | Ministry of Business, Innovation and Employment, 2018). One of the main reasons

8Growth and Demand for Tourism
behind it which deserves mention is that most of the international tourists reach the country
through the Auckland airport. Therefore it can be understood that Auckland is well equipped all
the essential hospitality arrangements including tourists spots in order to welcome the
international visitors. In addition to Auckland, Otago is one of the regions of the country that is
enabled with all the facilities for the international visitors. From culture to amusement, Otago has
been able to mark itself as one of the famous international tourism destination across the world.
Answer of question 4
4a
While discussing the global trends in regard to the tourism industry, sustainable tourism
comes to the forefront of the discussion. Nearly the entire tourism industry across the globe
focuses on practicing sustainability in order to reduce the negative impacts of globalization on
the planet. Meanwhile at the same time food centric tourism is on the rise over the globe. Beside
of leisure trips, there is a major trend emerged that inspire people to explore to taste the food of
different countries. Thus the concept of food tourism has become very popular among the
travelers (Getz et al., 2014). In regard to that, the tourism sector is too transforming in order to
exceed the expectation of the tourists.
4b
The global trends have significant impacts on the tourism industry of the country. As
New Zealand is one of the developed countries, it also has stepped forward towards the
sustainable tourism in order to reduce the negative impacts of globalization on the industry
(Edgell, 2016). However, the tourism sector of the country practice sustainability ad maintains
the attraction aspects at the same time. For example, the tourism industry of New Zealand focus

9Growth and Demand for Tourism
on implementing green drive within the resorts, hotels parks, gardens and so on (Edgell, 2016).
On one hand, more green reduces the negative impacts of pollution and on the other the it attracts
visitors more as mostly people go to New Zealand in order to spend leisure time, to relax from
the daily life. Thus the greenery in the resorts, hotels and even in the restaurants takes them away
from the hustles and bustles of the city life. As per the observation, sustainable development has
received massive response from the tourists thus the government of the country also encouraging
sustainable practices in the tourism sector.’
Meanwhile, the food tourism has been emerged as a recent trend yet very popular among
the western countries like New Zealand, Australia and so on. Over the recent past years, it has
been observed that the considerable number of tourists visits the country in order explore the
food culture of the country (Getz et al., 2014). The country in turn also welcomes the food lover
of the other countries with great hospitality so that they can be overwhelmed while exploring the
authentic food culture of the country. In respect to this it must be mentioned that food tourism
not only creates avenue to generate large revenue to the economy but it also pools a greater
extent of revenue in the food and restaurant industry of the country.

10Growth and Demand for Tourism
References
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[Accessed on 27th May, 2018]
Edgell Sr, D. L. (2016). Managing sustainable tourism: A legacy for the future. Routledge.
E-unwto.org (2017) UNWTO Tourism Highlights 2017 Edition retrieved from: https://www.e-
unwto.org/doi/pdf/10.18111/9789284419029 [Accessed on 28th May, 2018]
Getz, D., Robinson, R., Andersson, T., & Vujicic, S. (2014). Foodies and food tourism. Oxford:
Goodfellow Publishers.
Key tourism statistics | Ministry of Business, Innovation and Employment. (2018). Key Tourism
Statistics retrieved from
http://www.mbie.govt.nz/info-services/sectors-industries/tourism/key-tourism-statistics
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[Accessed on 28th May, 2018]
Tourismnewzealand.com (2018) TOURISM NEW ZEALAND retrieved from:
https://www.tourismnewzealand.com/ [Accessed on 27th May, 2018