Destination Queenstown is attributing a 7% increase in international guest nights in Otago to its multimillion-dollar promotion of the resort in Australia, but says even more Australian visitors can be encouraged to come.
Statistics New Zealand revealed that nationally there were 2 million guest nights spent in short-term commercial accommodation in May.
While down on May last year, the figure was up 4% on the May 2007 total.
International guest nights accounted for 46% of the South Island total at 366,000, up 16,000, or 5%, from May 2008.
International guest nights were up 8000, or 7%, in Otago in May.
Destination Queenstown chief executive Stephen Pahl told the Otago Daily Times the increase was a result of the tourism body's efforts to promote the resort in Australia, particularly during the shoulder spring and autumn seasons.
"Across the national board, it's still not the perfect result, but it's encouraging to achieve that result in the current economy, so I'm very pleased."
Mr Pahl said DQ had "the money to match the aspiration" of promoting Queenstown in the Australian market since 2007-08, when an additional $1 million was pumped into marketing the resort.
The trend towards short-haul destinations, transtasman airfares becoming cheaper and more frequent flights, the favourable transtasman exchange rate and industry partnerships were contributing factors behind the Otago increase, Mr Pahl said.
Of DQ's $3.085 million budget for 2009-10, between 55% and 60% would be spent on multimedia campaigns across the Tasman.
"Winter is shaping up well, but we have our sights now on the spring and summer seasons," he said.
"I do believe the summer season will be the moment of economic truth, and we'll be looking at building on [campaigns] throughout Queensland."