New Zealand Draws Record US Tourists With Wellness and Weak Kiwi Dollar

New Zealand welcomed a record number of visitors from the US in the 12 months through September as favorable exchange rates and increased air connections make the South Pacific nation more accessible.

New Zealand welcomed a record number of visitors from the US in the 12 months through September as favorable exchange rates and increased air connections make the South Pacific nation more accessible.

Arrivals rose to 390,116 in the period, Statistics New Zealand said Thursday in Wellington. US travelers made up 10% of all arrivals and are the second-largest source of visitors after Australia.

China may soon overtake the US as tourists from the country return to New Zealand in greater numbers. Arrivals from China rose to 340,125 in the 12 months through September and have surged by more than 94,000 in the past year. Chinese visits peaked at more than 454,000 in January 2019 before the savage impact of the Covid-19 pandemic on global travel. The numbers are now at 84% of pre-pandemic levels.

“Chinese arrivals have outnumbered US arrivals for the past six months, and at current growth rates, will overtake the US to become New Zealand’s second largest tourism market,” Nick Brunsdon, principal economist at Infometrics, said in an emailed note.

Tourism is one of the few bright spots in New Zealand’s economy, contributing around 17% to total exports and about 12% of all jobs, including indirect employment. The government has been committing funds to promote the nation globally, including in the US, while national airline Air New Zealand Ltd. and rival carriers have increased capacity to encourage arrivals.

Last month, Tourism New Zealand began promoting New Zealand as the “ultimate wellness studio” for Americans, arguing its geothermal waters, forest trails and indigenous Māori culture offer a respite to time-poor US travelers. Air New Zealand operates direct flights to five US cities including New York, while US carriers such as Delta Air Lines Inc. and American Airlines fly daily to Auckland from California.

Helping US visitors, the kiwi dollar has depreciated over the past six months, losing 6.6% against the greenback. That means the US dollar goes further when tourists buy goods and services in New Zealand.

Today’s report showed total arrivals rose 9% in the 12 months through September to 3.74 million.

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