Despite a drop in visitors to Tairāwhiti, tourist spending in the region jumped 10% to $132 million for the year ending July.
New data from regional tourism agency Trust Tairāwhiti’s destination insights dashboard showed a 9% year-on-year decrease in visitor days, referring to the total number of days all tourists spent in the district.
This included a 2% decrease in international visitor days to 525,000 and a 10% decrease in domestic visitor days to 1.8 million.
Australian visitor days increased by 5% to 159,900, making Australia the region’s largest international visitor market.
Visitor days from the United States and Canada increased 29%, while those from Asian countries excluding China, Japan and South Korea, increased 22%.
China, Japan and South Korea, which were recorded separately, had an 8% increase.
Across New Zealand, visitor days increased only in the West Coast and Otago – by 3% and 1%, respectively.
Taranaki recorded the largest domestic decrease, of 30%.
Overall visitor spending in Tairāwhiti increased 10% to $132m.
Domestic visitor spending reached $107m, up 4%, while international spending increased 45% to $24.8m.
Visitors from the Bay of Plenty spent the most in the region, contributing $20.8m.
Manawatū-Whanganui recorded the largest increase in domestic visitor spending, rising 123% to $9m.
The US was the largest international market by spending in Tairāwhiti, with visitors contributing $9.5m, an increase of 57%.
Visitors from Africa and the Middle East recorded the largest percentage increase in international spending, rising 125% to about $1.2m.
Food and beverage services received the largest share of visitor spending, at $55.1m, up 8% year-on-year.
While domestic spending on retail services, excluding food, beverages and fuel, decreased 5%, total spending in the retail sector increased 14%.
International visitor spending in the retail sector rose 68% to $32.8m.
The Wharf Bar and Grill owner Grant Fussell said overseas conflict, fuel and hospitality operating cost pressures meant this winter had been tougher than expected.
For his business, visitor numbers and spending were down.
Customers were “conscious of what they were spending”, only getting one meal and a drink instead of multiple courses and drinks, he said.
However, in the past four weeks, the tide had turned with visitors now “rewarding themselves” for the tough winter.
“So we are still getting the visitor numbers come through, and the head spend is increasing now the sun’s out and the season’s changed.”
Fussell expected December to be busy with the final Rhythm and Vines (R&V), and celebrations marking 10 years since the restaurant reopened following a fire.
“[We’re] excited to see what sort of other events are going to unfold over the summer period and year on year as well once R&V moves.
“I think we’ll get a different demographic coming back. We used to get a lot of older people coming through with a bit of disposable income, so that’ll be exciting as well.”
He hoped more Gisborne locals would consider hospitality employment to help fill vacant roles.
Data showed filled roles in the food and beverage service industry had decreased by 5%.
“It doesn’t matter how you advertise or where you advertise, the applicants aren’t coming through. So then you’re waiting on overseas students or people on visas to come in to fill those positions,” he said.
Fussell hoped attitudes would change so more locals could fill roles and remain in the region for longer.
Gisborne Mayor Rehette Stoltz said the decrease in visitor numbers was not surprising following highway closures through the Waioweka Gorge.
Spending figures were positive, she said.
Tairāwhiti businesses had been under pressure since Covid, facing repeated weather events, the cost of living and rising operating costs, she said.
“We know that the cost of living is not only affecting households, it’s also affecting businesses because the cost of insurance and rates and interest rates all have a direct impact on our local businesses.
“So to me it’s fantastic to hear that the spending and the investment and the trust that the visitors put in our restaurants and entertainment and food offerings are high.”
With R&V’s departure, Stoltz said the council, Trust Tairāwhiti and local businesses were working to bring smaller events to the region.
Work started last week on clearing woody debris on Gisborne’s Midway beachfront through trial fires.
Stoltz suggested the beaches could be used for surf lifesaving events: “with our fabulous sunshine and climate and our beaches, there’s so much on offer and we plan to make good use of it”.
Trust Tairāwhiti regional destination manager Joe Williams said the increase in visitor spending was encouraging, but longer-term trends needed to be considered.
Williams said international visitation was recovering across New Zealand and the trust had been actively promoting Tairāwhiti.
“However, month-to-month movements can be influenced by relatively small changes in visitor numbers, so we would want to see whether that trend continues over a longer period before drawing firm conclusions.”
Domestic tourism would be supported through events funded by the Regional Events Fund and work with local operators and regional partners, Williams said.
“We’re also looking at several opportunities to strengthen the events calendar and increase visitation across different markets and different times of the year.”
October would see a range of local events kick off and the beginning of the cruise season, before the R&V Last Dance in December, he said.
LDR is local body journalism co-funded by RNZ and NZ On Air.