A massive tax windfall generated by booming tourism should be reinvested in the industry, a tourism group says.
International and domestic tourists contributed $3 billion in GST in the year to 31 March. Photo: Guided Walks NZ / Ngai Tahu Tourism
The latest tourism figures show spending has hit a record high, with almost $35 billion spent for the year to 31 March, up $3.8bn on the previous year.
Tourism now accounts for just over 20 percent of total exports of goods and services, and generates 5.6 percent of gross domestic product.
The government's collection of GST from international visitors increased to over $1bn, a 20 percent increase on the previous year.
When GST paid by domestic travellers was included, the total take from annual tourism spending rose to nearly $3bn.
Tourism Industry Aotearoa chief executive Chris Roberts said the figures debunked the myth that visitors were not paying their way.
"No matter how you calculate it, the government's income from international visitors is many, many times greater than the costs incurred in attracting and looking after them.
"Nobody is making more money from the tourism boom than [Finance Minister] Bill English and Treasury."
Some of the GST windfall should go to support the industry, he said.
"With tourism growth set to continue, the government needs to play its part in providing the infrastructure to support that growth."
The private sector was already doing its bit, with hundreds of millions of dollars being spent on upgraded and new accommodation, attractions and activities, Mr Roberts said.
"However, some regions with small populations, along with a few tourism hot-spots, face major challenges and capital constraints. They need more of a helping hand from government."
Statistics New Zealand estimates the tourism industry directly employs over 188,000 people, or 7.5 percent of the total workforce.
