New Zealand is seen to have "fallen off the global radar" as a desirable destination, a report on the tourism industry says.
The State of the Tourism Sector 2012 report by the Tourism Industry Association and Lincoln University paints a mixed picture of the $23 billion-a-year industry New Zealand relies on so heavily.
The report, released yesterday, drew on industry data and the views of association members and others involved in tourism.
Tourism, directly and indirectly, employs nearly one in 10 New Zealanders and delivers $27 million in foreign exchange to the New Zealand economy each day.
"New Zealand is perceived to have fallen off the global radar as a desirable destination ... in part as a result of increasing competition from other destinations, and in part because of economic conditions in generating countries," the report says.
"I don't think we are perceived as a 'must-see' destination like we were back in the mid-2000s. We have certainly lost our edge," one interviewee said.
New Zealand was viewed as expensive and, to some, "still an elite proposition".
One person interviewed said it was "fair to say the industry is economically flat. [There are] some pockets of optimism and some pockets of potential or actual investment but, generally, it is in 'holding on mode'."
On the positive side, the Rugby World Cup brought 133,200 visitors.
"It is likely without this major event that overall visitor growth would have been considerably lower," the report says.
There was also a 4.4% growth in visitor arrivals for the year ended March 2012, compared with the previous year.
Association chief executive Martin Snedden said people interviewed had identified a range of opportunities, including cruise tourism, conference and incentive markets, and the New Zealand Cycle Trail.
