Destination Queenstown has reported the largest guest-nights increase in New Zealand for the month of July, despite international and domestic visitor figures showing signs of weakness.
DQ chief executive Tony Everitt said it was "encouraging" to see the recovery continuing.
"The increase in our international guest nights has been particularly driven by Aussie skiers and the Asian market, which is rebounding quite strongly."
Mr Everitt predicted the drop in other regions to be the result of caution within their own economies.
"Other international markets have been a little quiet, unfortunately. We suspect it is to do with the economic difficulties they are experiencing. It is something we are aware of and will continue to regard with caution."
Statistics from New Zealand's July commercial accommodation monitor show total visitor nights were up 6.8%, or 17,000, to 274,589, and international visitor nights were up 13.5% to 198,295, compared with the corresponding time last year. However, domestic visitor nights dropped 7.6% to 76,295.
"There's still some caution among Kiwi consumers which I believe has contributed to the downturn in the domestic market," Mr Everitt said.
Despite the drop in domestic figures, he remained confident.
"Our slogan continues to be encouragement with cautious optimism."
Queenstown Hotel Association chairman John McIlwain said: "These results continue the trend in recent months. Excellent snow conditions coupled with increased air capacity, marketing and favourable exchange rates directly resulted in Queenstown's surge in guest nights."
- Naeem Alvi
