New Zealand's tourism industry says it's feeling the pinch from high fuel prices, with flight prices on the rise and travellers arriving with less to spend.
Tourism is New Zealand's largest export sector, with international visitors contributing about $NZ8.3 billion ($A6.65 billion) to the country's economy last financial year.
New Zealand Tourism Industry Association (TIA) acting chief Oscar Nathan today welcomed the Clark government's decision to hold an inquiry into fuel prices.
"We understand that New Zealand is impacted by the international price of crude oil but still we question why fuel price rises are happening at such a rapid rate and the true reasons behind why these huge price rises are occurring," Mr Nathan said in a statement.
The government recently flagged an inquiry into the prices oil companies are charging.
The TIA said Air New Zealand had already raised prices three times this year due to the rising cost of aviation fuel.
"We have known from previous research that international visitors come to New Zealand with a set amount of money in their pocket, so if they spend more on flights they have less money to pay for other things," a TIA spokeswoman said.
A recent travel survey by New Zealand's tourism ministry showed financial pressures such as rising fuel and grocery prices were affecting tourism spending.
