More Spending By Tourists

Press, Volume CIX, Issue 31936, 13 March 1969, Page 1

More Spending By Tourists

Spending by overseas tourists is expected to rise from $l9 million in 1967-68 to $37 million to 1972-73 and $73 million in 1978-79, according to a report to the Tourist Development Conference by its economics and finance working party.

In addition, Air New Zealand is expected to raise its net foreign exchange earnings from $7.5 million in 1967-68 to $l6 million five years later, and $3B million in 10 years.

To cope with the demands of the growing numbers of tourists, an extra S4lm is forecast as being needed in new investment in tourism in

the first five-year period, and another sB3m in the second five-year period. Numbers of visitors from overseas are expected to rise from 113,374 to 239,000 in the first five years, and to 586,000 in 1978-79. In the 10-year period the number of Australian visitors is expected to rise from 61,269 to 322,000, and the number of Americans from 25,108 to 157,000.

Short-stay visitors—ships’ passengers and stop-over air passengers—were more tentatively estimated to rise from 84,839 to 180,000 in 1972-73 and to 300,000 in 1978-79. The committee says that the assets employed by the tourist industry will need to double to ss6m in five years and quadruple to slllm in 10 years. Investment would also be needed to meet the more gradually growing demand from New Zealand tourists and travellers.

In the next five years, the committee predicted the investments earning rate would rise from the present estimated 7 per cent to 10 per cent, because of the spending rate of international travellers and the better use of New Zealand’s tourist assets.