A national survey on tourism shows it has been sluggish and less profitable in the past three months, compared with the same period last year.
The Tourism Industry Monitor, an industry initiative set up to provide businesses with up-to-date information, says that from September to November demand fell 1% and profitability 1.3%.
But the monitor says the immediate future looks promising. It says most attraction- and activity-based businesses expect demand and profitability to increase by 1.5% in the three months to February.
The chief executive of the Tourism Industry Association, Tim Cossar, says the rise in confidence is significant after a tough year with a flat market.
Mr Cossar says next year presents a huge opportunity for New Zealand tourism because of the Rugby World Cup.