Holiday Parks sector worth over $1 billion to NZ economy
Visitors staying at holiday parks contribute more than $1 billion a year1 to New Zealand’s
economy, new research carried out for Holiday Parks New Zealand (HAPNZ) has found.
International visitors shell out $490 million (46%), while New Zealanders spend $578
million (54%). Expenditure by international visitors contributes directly to New Zealand’s
export earnings.
Earlier this year Angus & Associates examined the expenditure of holiday park visitors across a range
of regions and by a variety of visitor types. This peak season study found that the total spending by
holiday park visitors of $1.068 billion means their direct economic contribution is similar to that of
the New Zealand recreational fishing sector ($946 million in 20162), and greater than the cruise
sector ($484 million, 2016)3, and the New Zealand music industry ($245 million, 2015)4.
Compared with other export sectors, the foreign exchange contributed by international visitors
staying in holiday parks ($490 million) is as substantial as that generated by New Zealand apple
exports ($562 million)5 and the aquaculture industry ($500 million)6.
The research found that visitors spent an average of $145.71 per night while staying in holiday
parks ($113.73 for domestic visitors and $190.46 for international visitors)7.
In comparison with the 2014/2015 season, expenditure in 2016/2017 on a per person per day basis
was 5% lower8.
“This decrease was primarily driven by the domestic market. We believe it’s mainly because Kiwis
are spending less on fuel, as the price of petrol has fallen since the previous period of research in
2014/15. They also spent less on activities and attractions, probably because of our poor summer,”
HAPNZ Chief Executive Fergus Brown says.
New Zealand holiday parks generate 7.7 million guest nights a year, from 3.2 million guest arrivals9.
This level of activity represents 20% of all commercial guest nights in New Zealand in the last year.
1
Based on extrapolating average daily expenditure for domestic and international visitors recorded by Angus & Associates
over the December 2016 to February 2017 season to all domestic and international Holiday Park guest nights for the year
ending January 2017 (from Statistics New Zealand Accommodation Survey guest origin data). The total is $1,068 million.
2
http://www.nzmrf.org.nz/files/New-Zealand-Fishing-Economic-Report.pdf
3
http://cruisenewzealand.org.nz/data/
4
PWC, NZ Music Industry Economic Report, October 2016
5
http://www.plantandfood.co.nz/page/news/media-release/story/freshfacts-shows-export-growth-for-NZ-horticulture/
6
http://www.aquaculture.org.nz/industry/overview/
7
Angus & Associates, Holiday Park Visitor Expenditure December 2016 to February 2017, March 2017
8
Angus & Associates, Holiday Park Visitor Expenditure 2014/15, April 2015
9
Statistics New Zealand, Accommodation Survey, year ending January 2017
Angus & Associates
March 2017
Domestic visitors account for two-thirds (66%) of holiday park guest nights, while the international
market has grown over time to now make up one-third (34%) of guest nights (up from 20% fifteen
years ago)10.
Average expenditure per person per trip has increased by 12% since 2014/15 - primarily driven by an
increase in expenditure by international visitors, which may reflect the falling cost of international
airfares11, Mr Brown says.
Angus & Associates’ research also examined what holiday park visitors were spending their money
on. The table below shows how the expenditure of these visitors is distributed amongst various
types of businesses within host communities. It also calculates what this might mean in terms of
expenditure on an annual basis (based on guest nights for the year ending January 2017).
One-quarter (25%) of holiday park visitor spend can be attributed to accommodation costs (around
$266 million annually). The remainder, $760 million, is mainly spent on activities/admission fees,
groceries/snacks and eating out, and transport (including petrol/fuel).
Category of Expenditure
Accommodation
Activities/admission fees
Groceries/snacks
Transport
Cafés/restaurants
Petrol/fuel
Bars/nightclubs/alcohol
Other shopping
Total
Distribution of Spend
Holiday Park Visitors
(Dec to Feb)
25%
15%
15%
13%
10%
10%
2%
9%
100%
Approx. Annual Expenditure
(YE Jan 2017)
$266 million
$164 million
$161 million
$139 million
$108 million
$108 million
$26 million
$97 million
$1068 million
“Angus & Associates' research found some interesting differences in the expenditure of international
and domestic holiday park visitors. International visitors spend significantly more on activities and
attractions and transport, while domestic visitors spend slightly more on accommodation and goods
such as snacks and groceries,” Mr Brown says.
“International visitors also have a much shorter average length of stay at a holiday park - 3 nights,
compared with 7 nights for domestic visitors. So while international visitors spend more on a daily
basis, domestic visitors spend more per stay. For this reason, both markets continue to be important
to the sector as each offers different benefits.”
The research also found holiday park visitors spend on a very wide range of items, meaning the
economic benefit of a holiday park for its host community is not only well spread, but also not
limited to small ticket items. For example, the 2016/2017 research identified expenditure on
clothing and footwear, books and magazines, jewellery, camping and fishing equipment, pet
accommodation, gifts, car and bike repairs, pharmacy items, fabric, furniture, postage and souvenirs.
10
11
Statistics New Zealand, Accommodation Survey, guest origin data, historical data; year ending January 2017 data
http://www.stuff.co.nz/business/industries/76272277/Air-NZ-signals-big-drops-in-domestic-andinternational-airfares
Angus & Associates
March 2017
“Our study highlighted that campervan travellers are of very high value to holiday parks. Campervan
travellers spend an average of $183.82 per person per day while staying at holiday parks (and
$202.43 per person per day if we consider international campervan visitors only),” Mr Brown says.
“Two-thirds (69%) of international visitors to holiday parks during the period of the research were
staying in a campervan and these visitors reported higher than average spending on
activities/admission fees and (not surprisingly) transport costs.”
Holiday parks make a significant economic contribution to their local community, the research
found. Parks employ staff, purchase supplies, spend on facility maintenance, and pay marketing and
professional services fees, Mr Brown says.
“Other indirect expenditure should also be taken into account, such as the dairy that employs an
extra person over summer to cope with the business generated by holiday parks; the boating store
that places additional radio advertising to attract purchases from holiday park visitors; or the local
council that employs contractors to re-seal the public road leading to the holiday park.”
The research proves that holiday parks are good business, he says.
“Holiday parks provide a genuine authentic New Zealand holiday experience. The sector is heartened
to see a change from parks being sold for redevelopment to new parks being established, with
developments in Glenorchy and Hokitika being recent examples.”
For more information
Fergus Brown
Chief Executive
Holiday Parks New Zealand
Phone 04 298 3283
Mobile 021 535087
Email: [email protected]
Web: www.holidayparks.co.nz
Key facts:
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The holiday park sector provides 36% of New Zealand’s commercial accommodation
capacity and 19% of commercial guest nights.
In the year ended August 2016 holiday parks provided 7.456 million guest nights.
Guest nights to holiday parks are made up of 32% international visitors and 68% domestic
visitors.
While staying at holiday parks guests contribute over $1 billion in direct expenditure to local
communities.
Approximately $612 million (60%) of the expenditure is contributed by domestic travellers,
with the balance of $405 million (40%) by international travellers.
Expenditure by international visitors contributes directly to New Zealand’s export earnings.
Angus & Associates
March 2017