New Zealand, an island paradise known for its breathtaking landscapes, is witnessing an exhilarating resurgence in international tourism this year, signalling a promising outlook for the nation’s economy after the gloom of the COVID-19 pandemic. In an industry severely impacted by the global health crisis, the green shoots of recovery are evident, with a 31% ($455 million) increase in international tourism expenditure to $1.9 billion in 2022.

Tourism’s direct contribution to the GDP saw an uptick of 1.3% ($132 million), amassing $10 billion or 3% of the total GDP. The total tourism expenditure within the country also recorded a healthy rise of 3% ($704 million) from the previous year, reaching $26.5 billion.

Amid the optimistic numbers, GO Rentals, a New Zealand-owned rental car company, is a testament to the nation’s resilience. With a rich history spanning 24 years, the homegrown business has been thriving, leveraging technology and innovation to enhance the visitor experience. As a result, the company has grown from a modest family venture into a nationally acclaimed brand.

James Dalglish, the Chief Operating Officer of GO Rentals, notes the remarkable increase in international tourism in 2023, mainly from Australia and the United States. “Bookings for the 2022/23 financial year saw a Year-On-Year (YOY) increase of 300% from Australia and a YOY increase of 112% from the US,” says Dalglish.

Despite the global supply chain challenges brought by the pandemic that led to the sale of over half of the approximately 55,000 vehicles in the New Zealand market, GO Rentals remains undeterred. The company, Dalglish states, is addressing the vehicle shortage by growing its fleet and anticipates a 25% growth from March 2023 to March 2024.

The resurgence of tourism was further bolstered by the recently announced Better Work Action Plan as part of the 2023 Budget. An allocation of $18.2 million over four years has been budgeted to implement the plan, providing the tourism industry with a holistic package of proposals to foster positive changes.

A significant part of the 2023 Budget also included investment in infrastructure resilience, major events, and the expansion of the Electric Vehicle (EV) charging network. In an ode to New Zealand’s rich indigenous culture, the budget also outlined increased funding for New Zealand Māori Tourism and the New Zealand Māori Arts and Crafts Institute.

The Treasury’s forecast that New Zealand will evade a recession, largely thanks to tourism, adds to the optimistic outlook. Dalglish from GO Rentals expressed satisfaction with the budget announcements, particularly the investment in infrastructure resilience and the nationwide increase of EV chargers.

As global travel restrictions ease and consumer confidence grows, the travel and tourism industry is showing robust signs of recovery. Eager travellers, ready to explore new destinations and reconnect with loved ones, are fuelling this rejuvenation. With its compelling blend of nature, culture, and adventure, New Zealand is well-positioned to welcome the world back to its shores.

Written by: Bridget Gomez

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