The domestic tourism market is taking a hit as it faces some of its toughest trading conditions in many years - the result of the world financial crisis, compounded by domestic events such as rising fuel costs and the Christchurch earthquake.
New Zealand Tourism Industry Association (TIA) chief executive Tim Cossar said the earthquake had affected tourist behaviour, with both domestic and international tourists either cancelling trips to the South Island, or visiting just the North Island.
Rising fuel prices also meant many domestic tourists were choosing to stay closer to home rather than travelling further afield.
The issue was one of many raised during the TIA "Creating Our Future" road show in Dunedin yesterday, which brought grassroots tourism operators together to discuss their views about the state of the industry.
Mr Cossar said the tourism industry was New Zealand's biggest foreign exchange earner, worth $9.5 billion annually, generating wealth and one in 10 jobs across the country.
The purpose of the road shows, which were being held in 10 centres across the country, was to create a clear direction for the tourism industry over the next three years and beyond.
"The four-hour road shows are an opportunity for free and frank discussion around the challenges tourism operators are facing, potential solutions and opportunities, and what actions they see as being the priorities for the new government," he said.
"We want to ensure our industry capitalises on the opportunities offered in 2011, including Rugby World Cup, the filming of The Hobbit movies and the introduction of new air links with some of our fastest growing visitor markets."
Mr Cossar said the information gathered from the road shows will be further discussed by the chief executives of New Zealand's biggest tourism companies at an event hosted by Air New Zealand in May.
TIA would then report the key priorities to a top-level political summit in Wellington, which would be attended by the leaders of all the key political parties, including Prime Minister and Minister of Tourism John Key.
The industry priorities would form the basis of a 2011 Tourism Industry Election Manifesto which TIA would launch before the November 26 general election, Mr Cossar said.
"It has never been more vital for our industry to provide a strong, united message to the Government about our goals and priorities for boosting New Zealand's economic performance."
The road show will continue in Queenstown today.
