Author: Raynes

Rotorua—Key Facts and Figures 2005
For the year ended December 2005:-
There were 3.0 million visitor arrivals in Rotorua in 2005. 45% of these were day visitors 55% were overnight visitors. 71% of all visits were domestic visitors while only 29% were international.
The average visitor stayed 2.1 nights in Rotorua.
Domestic visitors accounted for 60% of visitor nights in Rotorua and International visitors accounted for 40%.
Rotorua’s largest domestic market is Auckland which accounts for 1.1 million visitor nights or 50% of all domestic visitor nights.
The largest international markets are now UK (384000 nights), Australia (253000 nights), America (180000 nights), North-East Asia ( 115000 nights) and Japan (102000 nights).
51% of visitor nights in commercial accommodation are by international visitors and 49% by domestic– means many domestic visitors are either staying with friends or family (private homes), in holiday homes, school camps or maraes.
Of the domestic visitors 39% came for a holiday, 24% VFR, !5% business, 5% education and 14% other reasons.
Day visitors spent approximately $85 million while overnight visitors spent $362 million in 2005. 57% of this figure was spent by international visitors.
There is a definite pattern of visitors– most domestic come in the school holidays, most international during summer
WHAT CAN WE DEDUCE FROM THESE FIGURES?

Economic Problems Rotorua Faces
Rotorua has faced a downturn in business over recent years. In January 2006 guest nights spent in commercial accommodation were down 7.9% while regions such as Queenstown and Dunedin experienced increases.
Visits to Rotorua attractions were down 14.3% with fewer domestic visitors (down 17.2%) and fewer
international visitors (down 13.1%)
Overall Rotorua has lost 1% of it’s market share, most of these being summer visitors.
The number of International visitors to NZ have increased by 1.3% to the year ending Jan 2006.
The growth rate for Domestic visitors staying in commercial accommodation in 2004-05 was –0.5% and in 2005-06 it was –2.3%. For international visitors it was +6.1% and –2.2% over the same period.
Reasons for the downturn -
Rising fuel prices
Cheap airfares to the South Island
Saturation of the Auckland market—many have now visited Rotorua
Attractions have become very expensive
Increasing fears of terrorism especially amongst the Asian visitors.
Rising NZ dollar makes NZ less attractive
Rotorua sees itself as wanting to become an exclusive destination—fewer visitors spending more money.
IS THE DOWNTURN A POSITIVE OR NEGATIVE TREND FOR ROTORUA?

Key Economic Factors-
Total visitor expenditure in Rotorua is estimated to have been $447 million – 52% by domestic visitors and 48% was spent by international visitors.
After taxes, wages and costs, tourism contributes approximately $250 million to the Rotorua economy or 12% of Rotorua’s GDP.
Tourism is Rotorua’s third largest contributor to GDP after forestry (16%) and manufacturing (14%).
Tourism provides 6500 full-time equivalent jobs in Rotorua and equates to 25% of the total workforce. 20% of this figure is direct employment while 5% is via indirect employment ie. those who work in the service industries.
Tourism is therefore Rotorua’s largest employer.
However tourism has a large number of employees who are largely unskilled and lowly paid, with a few at the top of the industry who gain the largest percentage of the profits.
Is tourism a positive or negative industry for Rotorua?

Spatial Patterns of Tourism Development in Rotorua
At present development is broken into a range of attractions centred on the icons of Geothermal activity, The Rotorua Lakes and Maori culture.
examples include—Whakarewarewa, Hells Gate, Tamaki Tours, trout fishing etc
Newer attractions are centred on either Mt Ngongotaha or are located outside of the city.
examples include—Skyline Skyrides, Agrodome, Krazy Karts, Tamaki Tours, Wai-o-tapu, white water rafting.
To attract the lucrative Auckland market, one day special events are run such as the Cat-eye moon ride, concert in the Pa, WRC rally, Rotorua marathon.
Accomodation is centred around Fenton Street and ranges from high priced hotels to budget backpackers and holiday parks. Holiday homes are generally located around the lakes.
Development at Mt Ngongotaha is an example of agglomeration.
Regulators such as the R.D.C. Iwis, and those who run attractions are mainly located within Rotorua. Few outside organisations run many large developments therefore most capital spent in Rotorua stays in Rotorua.
What do these patterns tell us about tourism in Rotorua?