NZ beats Australia in tourism battle

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Australia is coming off worse in the battle for trans-Tasman tourism, with New Zealand reporting a record surge in the number of visitors in July.

The number of Australians who crossed the Tasman for a holiday last month was 47,748, a rise of 37 per cent on the same period last year.

Nearly 3000, or 3.1 per cent, fewer New Zealanders came to Australia in the same month, lower than Federal Government forecasts. New Zealand is Australia's biggest tourism market, and was the source of 1.1 million visitors last year.

In June New Zealand tourism authorities crowed about their 1 millionth Australian visitor for the year, citing as key factors a rise in marketing - the tourism body spends $8 million a year in marketing to Australians - and the strong Australian dollar.

The chief executive of Tourism New Zealand, George Hickton, said: ''There's no doubt that once you are over there the strong [Australian] dollar does increase your spend. There have also been some very good air fares.'' However, the lower New Zealand dollar and the recession had stopped New Zealanders travelling to Australia, he said.

Tourism Australia declined to comment on the figures but its most recent report said: ''[New Zealand] retailers convey that there is still a high level of interest in leisure travel to Australia, and airlines continue to drive the market with highly competitive fares.''

However, it added that the country remained ''in volatile recessionary conditions with low consumer sentiment and high inflation''.

Tourism Australia does not disclose how much it spends on marketing in New Zealand but Christopher Brown, the managing director of the lobby group Tourism and Transport Forum, said Australian tourism chiefs needed to change tack and pour extra money into marketing the country.

''They [New Zealand] are doing a good hard retail campaign and it appears to be working,'' he said.

''That is why we need new money and we need to do a new tactical campaign and quickly.''

- © Fairfax NZ News