The Size and Economic Impact of the Hospitality and Tourism Industry

Topics: Tourism, New Zealand, Employment Pages: 9 (3267 words) Published: April 28, 2011
The Size and Economic Impact of the Hospitality and Tourism industry: Tourism is a massive industry in New Zealand. It has a major consequence on the rest of the economy from the employment it provides to a major percentage of the workforce (9.6% of the total workforce in New Zealand), thereby contributing to the Gross Domestic Product (GDP). The tourism growth in New Zealand is the outcome of the numerous of options that the hospitality industry offer visitors from all over the world. Some of the choice of accommodation that NZ offers are Apartments, Beach Houses, Holiday homes, Motels, Backpackers, Holiday Parks, Homestays, Nature retreats, Resorts , Health spas, Vineyard accommodation, Bed and breakfast, Farmstays, Hotels etc Summary of the performance of tourism industry for the year ended March 2010 are: Total tourism expenditure was $22.4 billion, an increase of 2.1 percent from the previous year. International tourism increased 1.6 percent ($149 million) to $9.5 billion and contributed 18.2 percent to New Zealand’s total exports of goods and services. Domestic tourism expenditure was $12.9 billion, an increase of 2.5 percent from the previous year. Tourism generated a direct contribution to GDP of $6.5 billion, or 3.8 percent of GDP. The indirect value added of industries supporting tourism generated an additional $8.6 billion to tourism. The tourism industry directly employed 92,900 full-time equivalent (FTE) employees (or 4.9 percent of total employment in New Zealand), a decrease of 1.6 percent from the previous year. Tourists generated $1.7 billion in goods and services tax (GST) revenue (Statistics New Zealand, 2010c). The instability in the results was contributed by the global financial crisis, swine flu pandemic etc, this demonstrates how tourism industry is dependent on the external factors for its growth. It is predicted that tourism and hospitality industries would witness an increase in the inbound and outbound travellers, by an average of 3percent growth annually till 2016(Ministry of Economic Development, 2010a). When more revenue is obtained and the business expands, employees are too benefitted by getting higher and constant income. Moreover with Rugby world-cup round the corner the industry is to get a massive boost to the local economy.

2.2. The Size and Economic Impact of the Holiday Park Sector Holiday Parks are the third largest sector of the commercial accommodation industry in New Zealand, after hotels and motels (by usage). Currently 20% of all nights spent in commercial accommodation in New Zealand are spent in holiday parks (Statistics New Zealand, 2010a). Current research suggests that holiday parks attract visitors from a wide range of socio-economic groups. Data from The Ministry of Tourism’s International Visitor Survey suggests that international visitors staying in holiday parks spend more than those staying in other forms of commercial accommodation, and it is thought that while staying at Holiday Parks, visitors add around $623 million in direct spending to New Zealand’s economy every year (Angus & Associates, 2009). In 2009, the holiday park sector in New Zealand comprised 421 businesses which hosted 6.4 million guest nights and employed 2,200 individuals. The holiday park sector includes caravan parks and camping grounds. Some holiday parks also offer secondary accommodation such as cabins, tourist flats and backpacker style lodgings. Caravan parks offer powered sites for caravans and campervans with shared toilet, shower and laundry facilities. Camping grounds predominantly provide sites for campers and include commercial camping grounds in addition to national parks where a site charge is levied. The holiday parks referred to in this report include those that are GST registered, with a turnover of over $30,000 per annum (Holiday Accommodation Parks Association of New Zealand, 2010). The Holiday park sector, which is an fundamental part of a...
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