International Tourism

Since the collapse of the demand for wool in the 1960s and 1970s, New Zealand has been looking for an alternative way of paying for the imports that we need for a modern lifestyle. For many, international tourism was seen as the solution, but even after significant investment by the government, tourism directly contributes a bit less than 6 percent of our GDP, and about half that comes from international tourism. International tourism is more important for providing employment, as most tourism activities are labour intensive. About a fifth of the workforce is directly involved in tourism.

The closure of the border to keep out Covid19 has had a serious impact on businesses who depend on international tourist. And due to the uncertainty about when the border will be opened again, there is serious uncertainty about when international tourism will get underway again. I hope that when the tourists do return, the industry will be re-established on a sounder basis.

• Although international tourism has provided employment for large numbers of people, the wages are poor. Many of the employees who serve tourists are only paid the minimum wage. Many of the jobs are part-time and some are seasonal, so they are inadequate for supporting a family.

• Because many of the jobs offered are poorly paid, tourism-related businesses often find it difficult to attract New Zealander to work for them. Consequently, they depend on migrant labour, because only migrants are willing to work unsocial hours on a seasonal basis for poor pay. Following the coronavirus shutdown, large numbers of migrants are stuck in tourist towns, with expired visas and no income, because they can’t afford to go home.

• Tourism places a big load on public infrastructure without contributing to the costs. The industry wants airport expansion, cruise ship terminals, and better roads. They expect accommodation to available where and when they need it. Tourists want to be able to travel in National Parks without contributing to the costs. When they get sick, they need medical services, but they do not always pay for it.

• Most tourists are stingy with their spending. I know I was when I have travelled overseas. It is their choice to keep their spending controlled while visiting the country, but that means that they are not going to be the solution to countries problems.

If international tourism starts up again, I hope that it will be established on a sounder economic basis. New Zealand needs tourism businesses that:

• contribute to the cost of the infrastructure that they use;
• pay wages or salaries that provide enough income to support a family
• are not dependent on the exploitation of migrants to be profitable.