International Tourism numbers are facing a slowdown as global instability impacts.
With International events driving uncertainty especially the Trade War between the US and China, Hong Kong unrest and Brexit are playing into the global economic fears, New Zealand is on the receiving end in the form of a slow down in international visitor arrivals. While QAC is reporting growth in international numbers this is predominantly Australian arrivals with the Chinese market, which is behind last year by 8%, entering through Auckland and getting washed into the domestic travel numbers. Chinese visitor arrivals have been slowing since late last year and the tourism industry is bracing for no or very low growth for the next couple of years.
Some key industry figures believe that a slow down is an opportunity to prepare for growth in the future and to address some of the holes in the tourism offering, especially around infrastructure.
Locally some concerns are appearing with a significant jump in hotel rooms coming onto the market just as the market is slowing. A tightening job market could also impact employee conditions just as there is a focus on local businesses paying the living wage.
If conditions deteriorate significantly expect to see a swing to focus on the domestic market which still makes up two-thirds of the tourism industry.