Inbound Tourists to New Zealand: An Application of Shift-Share Analysis to Measure Arrivals Competitiveness
Dr. Satya Gonuguntla, Renuka Narayan

In the pre-COVID era, tourism was one of the fastest growing sectors accounting for about 10% of the global economic activity, with 319 million people employed globally in this sector. In many countries, international tourism constitutes a major part of the economy in terms of generating export revenue and, creating jobs. International tourism plays a significant role in integrating the New Zealand (NZ) economy with the global economy as New Zealand is geographically isolated from other countries. In line with the global trend, there has been an increase in the inbound tourists to NZ from 1.45m in 2015 to 3.9m in 2019 a 38% increase, accounting for 6% of GDP, 13.5% of employment, and 21% of NZ’s total exports. Australia is New Zealand’s closest neighbor which attracts large number of tourists every year which also benefits New Zealand as these two destinations are combined by the visitors. Given the significance of tourism sector to its economy, New Zealand has to remain competitive to attract tourists. An application of Shift-share analysis indicates that from 2010 onwards, a clear pattern of rising trend emerges with regard to actual growth in arrivals, area wide effect, and the competitive effect.

Full Text: PDF     DOI: 10.15640/jthm.v8n2a3