Each year, Statistics New Zealand releases the Tourism Satellite Account (TSA) – the most comprehensive measure of tourism’s contribution to the national economy. The latest report, covering the year ended March 2025, provides a valuable snapshot of the visitor economy and it continues to support businesses, communities and employment across Aotearoa.
Nicola Greenwell
Total tourism expenditure reached $46.6 billion, an increase of 3.3 percent on the previous year. Tourism now contributes 7.7 percent of New Zealand’s GDP, reinforcing its position as one of the country’s most significant economic sectors.
International visitors spent $18.1 billion, up 7 percent, while domestic tourism remained strong at $28.5 billion, reflecting the continued importance of New Zealanders exploring their own backyard. Overseas visitor arrivals grew 4.3 percent to more than 3.3 million people, showing continued growth in global travel demand.
Tourism remains a major employer, currently supporting 327,888 jobs across New Zealand, with 194,631 people working directly within tourism industries.
Tourism and Hospitality minister Louise Upston recently highlighted the significance of these figures, noting one in nine New Zealanders are now employed in tourism and hospitality, underlining the sector’s critical role in supporting employment and regional economies.
Hamilton City. Photo: Hamilton and Waikato Tourism
So, what does this mean for the Waikato? For the same period, Waikato’s key indicators reflected the national data:
- International visitors spent $130 million in the Waikato, an 11 percent increase year-on-year.
- The United States accounted for the largest share of international expenditure at 31 percent, followed by Australia (20 percent) and the United Kingdom (13 percent).
- Domestic visitors – New Zealanders travelling within our region – spent $772 million in the Waikato, continuing to provide the backbone of regional tourism activity.
- 13,200 people were employed in the tourism industry across the Waikato, generating $644 million in employment earnings that is largely put back into the local economy.
The data speaks for itself, with around $902 million in electronic card spending in the Waikato during the period. This represents new money entering the regional economy, flowing through to local businesses, suppliers and communities.
For the economy, tourism is more than visitors. It is a key driver of regional economic activity, employment and investment.
However, these benefits are at risk of being eroded by rising fuel prices, with the potential to reduce long-haul visitation, particularly from the UK and Europe, while also increasing the cost of delivering visitor experiences.
While households are all watching fuel prices for the sake of our personal budgets, the tourism industry is closely watching for the impact of not only their business, but the flow-on effects of reduced visitor spend within our communities. More on this in next month’s column.
Hamilton Gardens, Ancient Egyptian Garden. Photo: Hamilton and Waikato Tourism
