Warm weather, strong tourist numbers and economic confidence have helped Otago lead the pack in spending in December, Paymark says.
More than $290 million was spent in Otago in December, 8.5% up on the previous December and the strongest growth of any region in New Zealand.
Paymark head of customer relations Mark Spicer said a ''whole lot of dots'' connected to push spending in Otago.
''Potentially, it's come at the cost of some other regions,'' he said.
''We are certainly seeing the strengthening of the New Zealand economy transfer through to consumer confidence and spending and people are certainly out there enjoying themselves.''
Another traditional holiday destination - Nelson - also experienced strong spending growth, up 8.2% on last year.
That reflected lower fuel prices and an increase in domestic tourism, Mr Spicer said.
''New Zealand's tourist destination and tourist numbers go from strength to strength,'' he said.
Dry and warm weather in Otago probably pushed North Islanders south for the Christmas and holiday break, he said.
''It [Otago] is a beautiful part of the country and people just have that confidence to book travel and even with the lower fuel prices it's easier to get in the car and take the family somewhere.''
In December, 5.47 million transactions accounted for $293.9 million in spending in Otago.
Mr Spicer said the hospitality industry had experienced particularly strong growth, with electronic spending up 11.6% in the accommodation sector and 11.2% in the food and beverage sector.
Hospitality Association of New Zealand Otago branch president Mark Scully said confidence was up in the region, as was spending.
''Things have felt better,'' he said.
''The economy is doing better and tourism numbers have been good.
''The outlook is looking really positive for 2015.''
Most people he had spoken to had experienced an increase in trading volumes and spending, he said.
Otago Chamber of Commerce retail committee chairman Alan Preston said the numbers were ''amazing'' and provided a positive outlook for Otago retailers.
''The good weather is really helping and people are feeling comfortable and are out there spending time with their families and spending money,'' he said.
Throughout New Zealand, spending was up 5.4% to $5.32 billion from $5.05 billion the previous December.
Mr Spicer said the growth in spending in December was the highest since 2007. It showed the improvement in the New Zealand economy and reflected strong tourist numbers.
''Early in December, New Zealand won the `top country' category in the 2014 Telegraph Travel Awards for the third year in a row,'' he said.
