The Ministry of Economic Development's domestic tourism survey, released this week, revealed an 11% increase in domestic tourism spending compared with the previous 12-month period.
Tourism research and evaluation manager Peter Ellis said in a statement that the latest statistics showed a continuing improvement in the domestic market after the slump in 2010 and 2011.
"At $9.95 billion, it's the highest amount we've ever seen spent domestically. Even adjusted for inflation, the domestic tourism spend is the second highest ever, behind a mini-boom in 2002 and 2003," Mr Ellis said.
"Business trips and those visiting friends and relatives were the key drivers of this increase. A total of 7.3 million overnight trips were recorded for travellers visiting friends and relatives - an extra one million overnight trips compared to the previous year."
Mr Ellis said there were 18.2 million overnight trips and 32.4 million day trips during the year ending March 2012.
Transport accounted for the largest increase in domestic tourist expenditure, at $3.4 billion in the year ending March 2012, up 10% from the previous year.
Food and beverage spending was $2.6 billion, an increase of 12%, while accommodation spending rose to $1.3 billion, up 8% from the year to March 2011.
