The launch of a low-cost airline linking Christchurch with Malaysia is expected to bring an extra 30,000 visitors to Otago next year, generating a multimillion-dollar boost to the local economy.
Malaysia-based carrier AirAsia X has shaken up the long-haul travel market with $99 air fares from Christchurch to Kuala Lumpur, which go on sale tomorrow.
The introductory one-way direct flights are between 20% and 40% cheaper than those offered by other airlines, and can be combined with the airline's regular Kuala Lumpur to London or Paris air fares, which means New Zealanders will be able to fly to Europe for about $1000 return.
"Long-haul air travel is now accessible to the average New Zealander," AirAsia X chief executive officer Azran Osman-Rani said yesterday.
"AirAsia X's direct connection will be able to stimulate new travel demands, particularly from young working adults and families, to travel to Malaysia and thereafter use Kuala Lumpur as a gateway to over 139 routes in South East Asia, that includes regional Asean cities or long-haul sectors serviced by AirAsia X.
"We anticipate that this new route will be able to tap first time travellers to and from Christchurch, which will significantly contribute to tourism growth in both New Zealand and Malaysia," he said.
The flights between Christchurch and Kuala Lumpur will start on April 1 next year. .
Part-owned by Richard Branson, AirAsia X is one of the fastest growing airlines in the world, and Mr Osman-Rani said the airline would now investigate other potential destinations in New Zealand.
However, he would not say specifically where, other than "somewhere in the North Island".
Dunedin International Airport chief executive John McCall said the airline was recognised as one of the top five in Asia, and its connection to Christchurch was "a huge coup" for the South Island.
"This is one of the most significant events for tourism in New Zealand for a long time.
"It's really going to be up to Otago now, to attract these people here."
Destination Queenstown chief executive Tony Everitt said the airline would fly to Christchurch four times a week initially, which would boost inbound traveller numbers in the South Island by more than 30,000 per year.
Eventually, it was hoped the airline could fly to the city daily which could push visitor numbers up to 70,000 a year, he said.
"Even if we get a quarter of those visitors, it would create a significant boost to the local economy. I would hope we could attract the majority of those people to come to Queenstown as part of their trip.
"There's some work to be done to achieve that."
Tourism Dunedin chief executive Hamish Saxton congratulated Christchurch International Airport and the Canterbury region for "winning" the airline's services to the South Island.
He said the new services would also help the South Island develop its position in emerging Asian tourism markets such as India and China.
"We've always noted India, in particular, has a great deal of tourism potential in New Zealand, but it has always been limited by airline access.
"AirAsia X's entry to the South Island will improve the situation.
"Their service will inject millions into the economy."
